Bulletin Resources Identifies New Lake Rebecca Gold Targets

THE DRILL SERGEANT: Bulletin Resources (ASX: BNR) has defined numerous priority exploration target areas within the company’s 80 per cent-owned (20% Matsa Resources (ASX: MAT)) Lake Rebecca project outside Kalgoorlie in Western Australia.

Bulletin Resources identified the new targets by way of a recently commissioned geological and geophysical study of the Lake Rebecca project to identify and advance priority gold target areas after a recent buy of up of new land tenure.

A key outcome of the study was the identification of what has been informally named the Rebecca Complex geological unit.

Of note is that the new unit hosts all of the gold deposits of Bulletin’s neighbour, Apollo Consolidated (ASX: AOP), as well as Bulletin’s healthier drill intercepts of late.

This same unit is recognised in Bulletin’s ground both along strike of AOP’s deposits as well as further north.

“The abundance of targets generated from this study and recognition of extensive areas of prospective geology in Bulletin’s ground supports the Board’s view to progress exploration as quickly as we can,” Bulletin Resources chairman Paul Poli said in the company’s announcement to the Australian Securities Exchange.

“Bulletin looks forward to continuing work and finding success in this exciting area.”




Email: admin@bulletinresources.com


Web: www.bulletinresources.com


White Rock Minerals Sees Red Mountain Potential in Alaska

THE INSIDE STORY: White Rock Minerals (ASX: WRM) is based in the historic mining town of Ballarat in Victoria, yet is exploring in New South Wales and Alaska.

White Rock Minerals owns the Red Mountain project in central Alaska – a high-grade zinc-silver-lead-gold project – and the advanced Mt Carrington gold-silver project in NSW.

Red Mountain has a Mineral Resource estimate of 9 million tonnes at 13 per cent zinc equivalent.

The company describes Red Mountain as being a quality advanced exploration project in an established mining district with plenty of potential to discover large zinc-silver-lead-gold-copper deposits in addition to extending the known zinc-silver-lead-gold deposits at Dry Creek and West Tundra Flats deposits.

There are already two high-grade deposits at the Red Mountain project, with an Inferred Mineral Resource of 9.1 million tonnes at 12.9 per cent zinc equivalent for 1.1 million tonnes of contained zinc equivalent at Dry Creek and West Tundra Flats.

This VMS polymetallic Resource zinc equivalent grade is made up of 5.8 per cent zinc, 2.6 per cent lead, 157 grams per tonne silver and 0.9g/t gold.

Recent drilling at Dry Creek intersected 1.4 metres at 13.9 per cent zinc, 4.4 per cent lead, 115g/t silver, 0.8g/t gold and 0.3 per cent copper for 21.6 per cent zinc equivalent.

White Rock reported assays from this drill core confirmed high-grade mineralisation had been intersected in massive sulphide over 200 metres down-dip from its previous drilling efforts.

The company interpreted this deepest intersection in the Dry Creek deposit to indicate a possible steeper dip to mineralisation than first interpreted, suggesting the deposit could be wide open down dip along its entire 1,200 metre strike length.

The massive sulphide intersected was interpreted to be the extension to the high-grade Fosters lens, the upper of two lenses in the Dry Creek deposit.

“This aggressive step-out drill hole at Dry Creek has shown that the deposit is wide open with fantastic high-grade zinc and silver persisting over 200 metres deeper than previously drilled,” White Rock Minerals managing director Matt Gill said when announcing the results.

“While this particular intersection is narrow, we know that typical VMS lenses pinch and swell along strike and down dip, as evidenced by previous drilling where true width intersections of up to 40 metres at the Fosters lens have been recorded.

“The majority of the current Inferred Resource is drilled to a depth of just 200 metres so a further step out of over 200 metres suggests considerable upside is possible in expanding the size of the deposit.

“Furthermore, ground conditions and the onset of winter terminated the drill hole prematurely with the high-grade Discovery lens remaining untested at this depth.

“This leaves considerable additional potential to this down dip position in the deposit, especially when considering the Resource footprint extends for 1,200 metres of strike.

“A targeted drill program early in the 2020 field season could unlock just how significant the Resource expansion potential could be.”

White Rock’s Mt Carrington project is underpinned by a Mineral Resource estimate of more than 340,000 ounces of gold and 23 million ounces of silver.

The Mineral Resources are situated in seven surface deposits, all located on granted Mining Leases and with developed infrastructure.

The company completed at Pre-Feasibility Study for Mt Carrington in late 2017, from which it has commenced progressing Mt Carrington through a Definitive Feasibility Study and permitting process prior to a Decision to Mine, at which point a construction and commissioning finance package is available, subject to certain conditions.


Email: info@whiterockminerals.com.au


Web: www.whiterockminerals.com.au


Rex Minerals Spreads Exploration Across the Globe

THE INSIDE STORY: Rex Minerals’ (ASX: RXM) exploration aspirations cover the search for copper in Australia and gold in the United States of America.

Rex Minerals’ Hillside copper project is located on the Yorke Peninsula, South Australia.

The JORC Code 2012-complaint Mineral Resource estimate for the Hillside project consists 337 million tonnes at 0.6 per cent copper and 0.14 grams per tonne gold, equating to approximately 2 million tonnes (4.3 billion pounds) of copper, 1.4 million ounces of gold.

Of the 2 million tonnes of contained copper classified as a Mineral Resource, approximately 65 per cent has been classified as Measured and Indicated Resources.

The Mineral Resource remains open at depth and towards the north and south.

The company claims the Mineral Resource for the Hillside project to be one of Australia’s largest open pit copper Mineral Resources.

In August 2019, Rex Minerals completed the acquisition of Hog Ranch Group Pty Ltd giving it ownership of the Hog Ranch gold project in Nevada, USA.

The company wasted little time in announcing an Inferred Mineral Resource at Hog Ranch of 44 million tonnes at 0.6 grams per tonne gold for 0.83 million ounces of gold.

The Resource was based on a large historical drilling database containing a total of 2,678 drill holes, a large percentage of which was completed by Western Mining Corporation (WMC) that operated an open pit and heap leach operation there from 1988 through to 1991.

“The acquisition of Hog Ranch and the rapid delivery of a maiden Mineral Resource of over 800,000 ounces of gold (the documentation and reporting of which has been independently peer reviewed by Peter Stoker of AMC Consultants Pty Ltd), demonstrates how positively we view Hog Ranch and its potential,” Rex Minerals managing director Richard Laufmann said when announcing the Resource.

“Hog Ranch offers Rex investors immediate exposure to the gold sector in one of the world’s most well‐ endowed gold regions.

“Nevada is a proven destination for successful gold exploration, discovery and production.

“The current database of 2,678 drill holes, which is included within the Mineral Resource estimate, has a total combined length of over 200,000 metres.

“At replacement, this drill data base alone would cost over $30 million.”

The Inferred Mineral Resource is based on large shallow disseminated gold mineralisation that exists from surface at Hog Ranch and extends to 175 metres below surface as well as on the historic database.

Outside of the Inferred Mineral Resource, Rex has defined a broad alteration system that stretches for over 20 square kilometres, which the company considers to highlight the potential scale and opportunity at Hog Ranch.

Deeper high-grade vein hosted gold targets at Hog Ranch that were intersected by earlier explorers remain untested.


Email: rex@rexminerals.com.au


Web: www.rexminerals.com.au


Superior Lake Firing up Canadian Zinc Project

THE INSIDE STORY: Superior Lake Resources (ASX: SUP) is focused on the redevelopment of the Superior Lake zinc project in North Western Ontario, Canada.

The project is a high-grade zinc deposit with a JORC resource of 2.35 million tonnes at 17.7 per cent zinc, 0.9 per cent copper, 0.38 grams per tonne gold and 34g/t silver and a Probable Ore Reserve of 1.96 million tonnes at 13.9 per cent zinc, 0.6 per cent copper, 0.2g/t gold and 26.2g/t silver.

The Superior Lake Zinc project is located east of Thunder Bay in the province of Ontario and covers 175 square kilometres, consisting two deposits – Winston Lake and Pick Lake.

In August 2019, Superior Lake released a Bankable Feasibility Study (BFS), which outlined an operation at Superior Lake that would produce 34,000 tonnes per annum of contained zinc metal with All in Sustaining Operating Costs of US$0.47 per pound, ranking the project in the lowest cost quartile of zinc projects globally.

The BFS assumed mine access via a new decline from surface instead of rehabilitating the old Winston shaft.

The numbers were based on a 1,000 tonnes per day operation, with a total upfront capital cost of US$87 million (plus US$10M pre-production and Owner’s costs).

Superior Lake is expected to produce over life-of-mine an average of 32,000 tonnes per annum of zinc concentrate and 5200 tonnes per annum of copper concentrate.

At this stage, production is expected to commence in 2021 for a mine life of nine years.

The company believes several advanced exploration targets exist that present an opportunity for a potential extension to the mine life.

Key highlights from the study include:

Financial returns:

C1 Cost – US$ 0.35/lb zinc
AISC Cost – US$ 0.47/lb zinc
NPV8 pre-tax US$157 million (A$224M)
IRR 31 per cent (pre-tax)

Key production figures include:

Plant throughput 325,000 tonnes per annum
Total 2.2 million tonnes treated
Average grade: 13.7 per cent zinc
Average zinc recovery: 96 per cent
Initial capital expenditure of US$86 million (A$106M) excluding owners and pre-production
Life of Mine of nine years
Annual production (after ramp-up) of 38,000 tonnes per annum contained zinc and 1400 tonnes per annum contained copper

“The purpose of this BFS was to validate Superior Lake becoming a viable zinc operation,” Superior Lake CEO David Woodall said when the BFS was released.

“This was clearly achieved, as the Study demonstrates the project will generate strong cash flow throughout the nine-year mine life.

“The driving factor for the result was the low AISC (LOM – US$0.47/lb), which, if brought into production, would rank the project in the lowest quartile of producers globally.

“The development of the project has been completed with the future in mind, as the decline will be in close proximity to each of the major geophysical anomalies that were identified in the 2019 exploration program, all of which are expected to be tested in the near future.

“A discovery at any of these anomalies would significantly change the parameters of the project both in terms of mine life as well as production profile.

“In the coming months, the company will focus on finalising off-take, equity and debt financing as well as completing an Optimisation Study whereupon a decision to mine will be made.”


Email: info@superiorlake.com.au


Web: www.superiorlake.com.au


Azure Minerals Commences Mining Operations at Oposura Project in Mexico

THE INSIDE STORY: Azure Minerals (ASX: AZS) has commenced mining operations at the company’s 100 per cent-owned Oposura zinc-lead-silver project, located in Sonora, Mexico.

Azure Minerals is mining easily accessible, high-grade mineralised material, from which it anticipates achieving monthly production of between 1,500 tonnes to 3,000 tonnes at grades between 10 per cent to 15 per cent combined zinc and lead.

All mineralisation to be mined is classified as Indicated Mineral Resources.

Azure said it anticipates starting to process this ore in September under a toll treatment agreement with a third-party sulphide flotation processing plant.

The subsequent delivery of positive cash flow to the company will support the ongoing Feasibility Study into a full-scale mining and on-site processing operation and provide general working capital.

“We acquired Oposura in August 2017, and to be commencing an early-stage, low-cost, high-grade mining operation within 24 months is a great achievement,” Azure Minerals managing director Tony Rovira said.

“This operation allows Azure to realise early cash-flow that will help fund the ongoing Feasibility Study, which will ultimately see Oposura in full-scale production.”

Oposura is a relatively small-scale mining operation, focused on mining easily accessible, high-grade, massive sulphide mineralisation from the project’s East Zone Mineral Resource.

Azure is to undertake the mining in two phases, initially by open pit, which is currently in progress, to be followed by underground extraction.

During July, Azure mobilised an open pit mining contractor to the Oposura site.

Work completed to date includes refurbishing of an approximately six-kilometre-long access road between the main highway and the mine site, prestripping overburden from above the massive sulphide horizon, grade control drilling, and mining and stockpiling of ore.

Phase 1 mining is removing, via open pit, fresh massive sulphide mineralisation situated on the eastern side of the East Zone mineral resource.

Mineralisation in this area occurs within five metres of surface and in some places is already fully exposed.

Overburden consists of weathered rock which is being stripped by bulldozer with no drilling and blasting required, ensuring low mining costs.

Since mining started, over 1,200 tonnes of ore have been excavated and stockpiled.

Based on mineral resource drilling within the mined area, where hole spacing is approximately 25m by 25m, the grade of this material is estimated to be between 10 per cent and 15 per cent combined zinc and lead.

The mineralised horizon of massive sulphides ranges in true thickness between one and four metres.

Open pit mining is expected to continue throughout July and August with several thousand tonnes of high-grade ore expected to be produced.

The western wall of the open pit will be cut back to enable access directly into the historical Tunnel D drive.

The underground mining contractor should mobilise to site in August to commence Phase 2 mining.

Initially, a portal will be established in the western wall of the open pit to access the Tunnel D drive which will then be side-stripped to provide 3m by 3m mechanised access to the western high-grade zone.

Underground mining will be carried out by the room and pillar method to ensure maximum ore recovery while minimising dilution.

Ore transport to the San Javier flotation plant will start in August and processing under the toll treatment arrangement is expected to commence in September.


Web: www.azureminerals.com.au

Middle Island Resources Limited (ASX: MDI)

Middle Island Resources has outlined a schedule of exploration and corporate activities focused on its stated intentions of recommissioning its 100 per cent-owned Sandstone gold processing plant at the earliest opportunity.

Middle Island’s exploration to date at the Sandstone project has been largely focussed on assessing brownfields targets, such as the Two Mile Hill deposit.

This has left the majority of greenfields targets untested or inadequately tested.

Advancing the Two Mile Hill deposit will remain a priority, but while that carries on, further exploration will hone in on identifying and quantifying additional open pit deposits of sufficient gold grade to facilitate a recommissioning decision.

Identification of the targets to be drilled goes back to 2017 when a Weights of Evidence (WoE) targeting study of the Sandstone gold project was carried out by structural geologist Dr Brett Davis that identified and ranked prospective areas within the project area.

Of these targets only one target, the Davis prospect, has so far been tested.

Two traverses of reconnaissance RC holes (5 holes) were drilled across the Davis East and Davis West anomalies to determine the nature and tenor of associated saprolitic mineralisation, encountering broad zones of ferruginous quartz veining within saprolitic ultramafic rocks.

Initial results included a best intercept at Davis West of:

1 metre at 1.88 grams per tonne gold from 23m depth.

The new program of eight RC holes will test the two blind gold anomalies that were not drilled previously, and to follow up on the results from the previous RC drilling.

Other WoE targets were identified besides the Davis target, situated within the southern portion of the Sandstone project.

Historical exploration activities in this area were restricted to broad spaced soil sampling and limited shallow vacuum and RAB drilling that failed to adequately test beneath the transported cover.

A planned program of geochemical auger and aircore drilling, comprising approximately 200 holes, will test eleven WoE targets across the southern portion of Mining Lease M57/129.

Other proposed work will follow up a 2018 program of geological mapping, rock chip sampling, and soil sampling on the Dandaraga tenement.

Three cohesive gold in soil anomalies were identified as the Agnes, Enigma and Central (Swede) gold anomalies.

A 20-hole RC drill program is proposed to test these gold soil anomalies for a mineralised bedrock source.

Drilling will comprise several East-West orientated sections across the trend of the soil anomalies, these will also test the extension along strike of mineralisation associated with historic gold workings at Swede, Agnes, and Enigma.

Middle Island recently acquired the 158.4 square kilometre Well Exploration Licence (E57/1102), subject to finalising a heritage agreement that occupies the southern end of the western limb of the Sandstone anticlinorium.

The tenement has received minimal exploration activity in the past, and what was done was mainly broad spaced soil sampling across the northern third of the tenement.

An initial, more systematic, low cost programme of geological mapping, rock chip sampling and soil sampling is proposed to determine to gold potential of the tenement.

Results from a 2018 RC program on the McIntyre project have encouraged Middle Island to test the extensions of the intersected mineralisation.

“A recommissioning decision for the Sandstone gold operation is predicated on defining adequate gold resources, at an acceptable grade, to justify the modest recommissioning costs and ensure sustainable production,” Middle Island Resources managing director Rick Yeates said.

“This is being progressively achieved via a dual approach; systematic exploration on Middle Island’s own tenure and engagement with neighbouring companies to consolidate adjacent deposits.”

Middle Island recently reached out to neighbour Alto Metals (ASX: AME), offering an all scrip off‐market take‐over offer for all that company’s issued ordinary shares.

Middle Island considers combining of the assets of the two companies would create a company with near-term cash flow potential and considerable production and exploration upside.

The company believes access to the Sandstone processing plant would provide Alto with an immediate, proximal and cost-effective processing solution for its gold resources that is not otherwise available.

“The collective Middle Island‐Alto gold assets offer a substantial growth opportunity for current and future shareholders of the Combined Group, via low capital intensity and a near-term production profile,” Yeates said.

“The further potential is to significantly extend this production profile via Middle Island’s Two Mile Hill underground deposits, consolidate further proximal deposits within a 100 kilometre radius, and amalgamate an entire greenstone belt offering significant resource and exploration upside.”

At the time of writing, Alto Metals had advised its shareholders to take no action and await further advice from the Board.


Email: info@middleisland.com.au
Web: www.middleisland.com.au

Directors: Peter Thomas, Rick Yeates, Beau Nicholls, Dennis Wilkins


Metalicity Limited (ASX: MCT)

With a bold new exploration strategy and a voracious appetite for acquiring patches of dirt in some of Western Australia’s most prolific mining regions, Metalicity is fast emerging as a junior exploration player with some serious upside.

The WA-focused base metal minnow has been running the ruler over the red-hot Paterson Province copper belt and the prolific Fraser Range, acquiring exploration license applications in both regions.

In the Paterson Province, Metalicity has generated more than 5,000 square kilometres of new Project Area Applications in close proximity to some of the names which dominate the region.

Such as the Nifty mine that has produced more than 40,000 tonnes of contained copper concentrate per annum, the Telfer mine, which hit over 425,000 ounces of gold and 16,000 tonnes of copper last financial year, as well as Rio Tinto’s new darling deposit, Winu.

Metalicity’s Desert Queen project, which consists of 679sqkm lies right amongst these giants, adjoining ground held by Rio Tinto.

Its Mandora project is even larger, containing 1,487sqkm of prime Paterson land to the north-west of Winu and adjoins tenements held by Rio Tinto and Fortescue Metals Group.

The projects are yet to be drilled; however, the company believes its odds of a major find are enhanced by a clever piece of geological interpretation conducted by the renowned geo-consultants Corporate Geoscience Group (CGSG) on behalf of Metalicity.

The Group has used artificial intelligence and machine learning to analyse the findings of the Geological Survey of Western Australia’s 2017 SEEBASE project – a recently published project analysing the Canning Basin and adjacent Paterson Province.

While SEEBASE was primarily developed for the oil and gas industry, the consultants have used advanced technology to manipulate the data and gain a new understanding of the Province for metals prospecting.

The results have been extremely encouraging, allowing Metalicity to identify targets that are most likely to yield results with shallower cover.

Additionally, this scientific edge has influenced further project acquisitions.

In February this year the company acquired three new projects in the Paterson that have all shown promise based on data interpretation from SEEBASE.

In the Fraser Range the company has also shown a preference for data-driven project acquisitions, adding two areas of interest to its books.

The areas have received 635 metres of drilling by Kennecott Explorations during 1980, with the work searching for Olympic Dam-style mineralisation.

While the exploration failed to find an Olympic Dam deposit it did intersect a mafic-intrusive anomaly – a rock type now known to be prospective for Fraser Range style nickel-copper sulphides, found at the Nova-Bollinger Mine and the Silver Knight deposit.

Metalicity has since conducted a deep dive into the historical work, even inspecting the core from Kennecott’s drilling, which was still available at the Kalgoorlie Core Library, concluding the project areas offer a unique opportunity to target large-scale and economic deposits of nickel-copper mineralisation.

“It is very pleasing to see Metalicity build its asset base in Western Australia with some very interesting copper project additions further strengthening our portfolio of base metal assets,” Metalicity CEO and executive director Mat Longworth told The Resources Roadhouse.

“The company has been through a period of transition and is now emerging as a highly attractive prospector with a clear value proposition.”

While Metalicity has amassed a large project base it has also been inching closer to a major cash generating event through the divestment of its zinc assets.

The market junior has spent the past few years inspecting the Admiral Bay zinc project, which is one of the world’s largest undeveloped deposits of zinc.

The company is currently in the process of spinning out the asset to the Canadian TSX Venture Exchange, where it aims to attract North American investors with a risk appetite for large projects.

The IPO is set to progress as soon as the global zinc market improves, providing shareholders with the tantalising prospect of investing in a market junior on the verge of a major cash windfall with a host of prospective projects.


Email: info@metalicity.com.au
Web: www.metalicity.com.au

Directors: Andrew Daley, Mathew Longworth, Justin Barton


Galileo Mining Ltd (ASX: GAL)

Galileo Mining has provided its investors plenty to smile about of late.

The cashed-up nickel–copper-cobalt play hit its stride at the company’s Fraser Range project in Western Australia.

Galileo – which listed back in May 2018 and is backed by highly successful prospector Mark Creasy who holds a 31 per cent stake – recently wrapped up a maiden drilling campaign at the Fraser Range project – a Joint Venture 67 per cent-owned by Galielo and 33 per cent-owned by Creasy’s private vehicle, Creasy Group.

The Fraser Range – which lies around 250 kilometres from Kalgoorlie – is an emerging nickel province home to two world-class nickel discoveries, the Nova-Bollinger deposit and the Silver Knight deposit.

Independence Group’s (ASX: IOG) Nova project – discovered back in 2012 on ground Creasy first started picking up back in the 1990s – effectively kicked off the ‘nickel rush’ in the Fraser Range region.

In production since July 2017, Nova produced 22,258 tonnes of nickel and 9,545 tonnes of copper in its maiden year of production.

Meanwhile, Creasy Group’s 100 per cent-owned Silver Knight deposit boasts an initial JORC resource of 4.2 million tonnes grading at 0.8 per cent nickel, 0.6 per cent copper and 0.04 per cent cobalt including a higher grade 200,000 tonnes at 3 per cent nickel, 1.9 per cent copper and 0.17 per cent cobalt.

Importantly, Galileo’s exploration team helped discover Silver Knight when they were part of Creasy Group, highlighting the team’s significant exploration success in the region.

Galileo is hoping another Nova or Silver Knight discovery lies on their tenement portfolio covering 492 square kilometres in Fraser Range, a province the company firmly believes has exceptional potential for new discoveries.

Success at Lantern target

In February 2019, Galileo kicked off an aircore drilling campaign at two high priority targets – the Lantern and Nightmarch prospects – the first drilling to occur at either prospect.

Early results were highly encouraging, with Lantern returning anomalous nickel and copper results from the first drilling program completed.

Best assay results included:

27 metres at 0.18 per cent nickel and 0.17 per cent copper from 47m and 8m at 0.21 per cent nickel and 0.03 per cent copper from 45m.

Galileo considered tis result to greatly improve the prospectivity of the area.

This was backed up by final samples from Lantern, which included a best result of 7m at 0.18 per cent nickel from 45m.

The results were music to the ears of investors and management alike with managing director Brad Underwood quick to point out the program had successfully delineated target zones within Lantern of sufficient scale to potentially host significant economic nickel-copper mineralisation.

“We have been fortunate to hit anomalous nickel and copper in the first ever drilling program given the target zone covers over four square kilometres in size,” Underwood told The Resources Roadhouse.

“This drilling has delivered numerous positive indicators with sample results, mineralogy, and rock types, all increasing the prospectivity of the area.”

Galileo has now wrapped up first round drilling at Lantern with 76 drill holes completed for 4,451 metres.

Geochemical, petrographical, and drill hole logging data identified multiple prospective intrusions over a horizon of around seven kilometres length.

Petrography results from Lantern has also confirmed rock types considered to be capable of hosting magmatic nickel mineralisation.

Follow up work included a wide-ranging ground EM survey in May, which was designed to identify electrically conductive signatures that may represent economic sulphide mineralisation.
Empire Rose on the horizon.

At the other end of the Fraser Range belt, approximately 30 kilometres from the Nova mine site, lies Galileo’s Empire Rose prospect where a round of aircore drilling and EM and IP surveys identified a conductive target with potential for sulphide mineralisation at 250m deep.

Drill testing of the prospect is scheduled to start in May with a Reverse Circulation (RC) pre-collar to be followed by a diamond drill tail through the target zone.

Underwood said Galileo had now received drilling approvals for the prospect with drilling scheduled in May.

“The upcoming work at Empire Rose will be the first time Galileo has conducted deep drilling in the Fraser Range,” he said.

“Empire Rose is a stand-out target and it is an exciting time for the company as we prepare for drill testing.”


Email: info@galileomining.com.au
Web: www.galileomining.com.au

Directors: Simon Jenkins, Brad Underwood, Noel O’Brien


Corazon Mining Limited (ASX: CZN)

Corazon Mining is a base metals explorer exploring two projects, one in each global hemisphere.

Overseas it envelops the entire Lynn Lake nickel-copper-cobalt mining centre in Canada.

Domestically it has the Mt Gilmore project in New South Wales that hosts the Cobalt Ridge deposit.

Corazon owns 100 per cent of the Lynn Lake Mining Centre located in Manitoba – historically one of Canada’s most prolific nickel producing regions.

Lynn Lake is a historical mining centre that was mined continuously for 24 years prior to closure in 1976.

In 2015, Corazon consolidated the Lynn Lake mineral field for the first time since mine closure and in doing so created an important nickel-copper asset.

Corazon recently announced information and results from initial metallurgical testwork carried out at the Lynn Lake nickel copper-cobalt sulphide project in Canada.

The company has declared its initial results from a metallurgical testwork program at Lynn Lake as exceptional having, for the first time, delivered separate high-value nickel and copper concentrates.

The results include the production of a new nickel concentrate with a grade of 26 per cent nickel with recoveries of 71 per cent and a new copper concentrate with a grade of 27 per cent copper with recoveries of 77 per cent.

These results are yet to be fully optimised, however Corazon expects on-going work will deliver further improvements.

This technical breakthrough represents an important step forward in Corazon’s development pathway for Lynn Lake as it supports the production and dispatch of separate copper and nickel concentrates from site to smelters and removes the need for potentially costly secondary processing from a bulk (nickel-copper) concentrate onsite.

Operations and metallurgical testwork completed since the mine closed were unable to achieve the nickel grades observed in this current testwork, or produce separate nickel and copper concentrates with the purity of this testwork.

The company has testwork underway that is focused on ore characterisation, flotation and product definition for down-stream processing, and is designed to provide key data for future mining and development studies for the possible re-commencement of mining at Lynn Lake.

Corazon has approximately 500 kilograms of fresh broken, mineralised fist-sized pieces of rock sample transported from site to Australia for analysis.

The sample was delivered to ALS Metallurgy in Western Australia, and internationally recognised metallurgical consultants, METS Engineering, managed the testwork.

The testwork included an initial flotation process to concentrate the copper and a subsequent flotation process to concentrate the nickel and cobalt.

Modern advances in processing technologies and reagents have delivered substantial benefits and efficiencies with respect to metal recoveries and product quality, which may in turn deliver significant reductions in both operating and capital costs associated with any future development of Lynn Lake.

Corazon holds the right to earn up to 80 per cent of the Mount Gilmore cobalt-copper-gold project that hosts the rare, cobalt dominant sulphide Cobalt Ridge deposit, claimed by the company to be one of the highest-grade cobalt deposits in Australia.

The company recently announced the discovery of a major copper-cobalt-silver-gold trend at the Mt Gilmore project, after its exploration activities discovered multiple, large (plus-one kilometre) priority targets within a major copper-cobalt-silver-gold feature of more than 11 kilometres in strike length, which forms part of the currently defined 22 kilometre-long, mineralised Mt Gilmore Trend.

Corazon considers this newly identified Mt Gilmore geochemical trend to represent a district-scale exploration play for large intrusive-related copper-cobalt-gold deposits that provides the company with a unique early-stage copper-driven opportunity in eastern Australia.

The region has been subject to little or no modern exploration activities or drill testing within the priority areas Corazon has defined.

The geochemical anomalies were identified from surface sampling the company carried out at Mt Gilmore in 2018.

This was part of a program that also included 3,893 soil samples and 230 rock-chip samples.

The results provided compelling evidence of an extensive hydrothermal event within the project, containing metal associations indicative of large intrusive related copper-gold systems.

Rock chip and grab sampling within these soil anomalies has returned high tenor copper (up to 21.6 per cent), cobalt, silver and gold.

This sampling tested what Corazon has interpreted as being high-grade ‘leakage structures’ extending from much larger, concealed, copper sulphide-rich hydrothermal centres.

These structures, in isolation, also provide prospective targets for further exploration and drilling.

Corazon’s assessment that the numerous occurrences of copper-cobalt-gold mineralisation identified in late-1800s/early-1900s small scale mining operations may in fact be part of a much larger system, represents a great advancement for the project, substantially increasing it’s potential.


Email: info@corazon.com.au
Web: www.corazon.com.au

Directors: Clive Jones, Brett Smith, Jonathan Downes, Dr. Mark Yumin Qiu


Cassini Resources Limited (ASX: CZI)

Cassini Resources punches well above its weight divisions for a junior exploration company.

Cassini Resources is developing a project with potential to become a low cost (first quartile) nickel/copper operation with an anticipated initial mine life of over 15 years with a Joint Venture partner with industry pedigree.

Cassini Resources acquired the Wets Musgrave Project (WMP) from BHP Billiton in 2014 from when it progressed the project by conducting regional exploration, in-fill drilling and further geological activities.

The company’s initial work quickly confirmed the economic viability of the Nebo-Babel deposits, attracting the attention of industry heavyweight, OZ Minerals (ASX: OZL).

In 2016 the two parties executed a Joint Venture Agreement to fast track development of the WMP, located in Western Australia.

Besides the already established Nebo-Babel nickel and copper sulphide deposit, the projet also entails the emerging Succoth copper deposit.

Under the agreement, OZL is funding a minimum of $36 million of development and exploration expenditure, including completion of a Definitive Feasibility Study (DFS), for a 70 per cent interest in the project.

The agreement includes a minimum $28 million funding for continued studies on Nebo-Babel to progress it to a Decision to Mine, as well as a minimum regional exploration spend of $8 million to assist in identifying additional value adding opportunities.

Cassini has taken that $8 million ball and run with it hard, and although it remains focused on the WMP, the company has its eyes on numerous regional opportunities it expects could provide exploration success.

The company has an option to earn 80 per cent of the Yarawindah Brook nickel-copper-cobalt project northeast of Perth, near New Norcia.

The project has had limited nickel, copper and cobalt exploration, despite a favourable regional setting, prospective geology and near-surface occurrences of nickel and copper mineralisation.

Historic exploration has focussed primarily on a small platinum and palladium (PGE’s) resource which the Company views as a “path-finder” anomaly for massive nickel – copper – cobalt sulphides.

An airborne electromagnetic survey in 2018 identified conductors worthy of further investigation, followed by a surface fixed loop electromagnetic (FLEM) survey over higher priority AEM anomalies in order to confirm and better constrain the conductors prior to drilling.

Cassini was encouraged enough by its exploration results to add additional tenements along strike, taking its total land position to146 square kilometres.

The 100 per cent-owned Mount Squires project lies adjacent to the WMP but does not form part of the Joint Venture with OZ Minerals.

Gold mineralisation was first identified at Mount Squires by Western Mining Corporation (WMC) during geochemical surveying in the late 1990s.

Now in the 2010s, Cassini has spent the past two years developing the project by consolidating tenements with prospective gold targets that were defined through historical drilling and geochemical data compilation.

The current healthy Australian Dollar gold price has given impetus for Cassini to pay more attention to Mount Squires during the 2019 field season.

Historical results from two targets, the Handpump and Centrifical prospects, have whetted Cassini’s interest.

Previous drilling at the Handpump prospect returned gold intercepts including: 15 metres at 2.3 grams per tonne gold from 31m down hole.

It is thought gold mineralisation at Handpump may represent more distal mineralisation that has leaked north-westwards along the major structure.

The Centrifical prospect is most prominent soil geochemical anomaly with a zoned molybdenum-lead-zinc anomaly at the intersection of prominent northwest and northeast striking structures that may represent the heart of an epithermal mineralised setting.

The company believes further desk top work may enhance these targets for drill testing and it recently acquired new remote sensed datasets to help map surface geology and provide better context for soil geochemical anomalies.

At the 100 per cent-owned West Arunta zinc project in the Amadeus Basin, Cassini has been targeting sedimentary zinc targets since 2014.

These targets have been developed over time through airborne electromagnetic, soil geochemistry, aeromagnetic and gravity surveys and a 10-hole RC drill program was carried out in 2018.

Logistics meant results of this drilling were delayed, however, a preliminary analysis of results has now been completed showing anomalous values of zinc, lead, copper and silver were intersected in several holes with a best result of:

5m at 0.15 per cent zinc and 2g/t silver from 97m.

Cassini was still working its way through these results at the time of writing but indicated that one it has completed a full analysis it will then consider its approach to further exploration at the project.


Email: admin@cassiniresources.com.au
Web: www.cassiniresources.com.au

Directors: Mike Young, Richard Bevan, Greg Miles, Jon Hronsky, Phil Warren