Musgrave Minerals: New year…New Gold

THE INSIDE STORY: Musgrave Minerals started 2019 as it finished 2018, by announcing further positive drilling results from the company’s Cue project in the Murchison district of Western Australia.

Late in 2018, Musgrave Minerals completed a maiden reverse circulation (RC) drilling program at the Lake Austin North target.

Lake Austin North is located approximately three kilometres north of the Break of Day/Lena targets, which have been the subject of earlier Musgrave exploration activities.

Lake Austin North sits within a 28km-long prospective corridor that hosts the Break of Day and Lena gold resources of 868,000 tonnes at 7.15 grams per tonne gold for 199,000 ounces of gold and 2.68 million tonnes at 1.77g/t gold for 153,000 ounces of gold respectively.

The maiden Lake Austin Drilling consisted 18 holes focused on the A-Zone and C-Zone that led to the discovery of thick, high-grade basement gold mineralisation at A-Zone with results including an intercept of:

18MORC057
94 metres at 2.2g/t gold from 156m to end of hole (EOH), including;

52m at 3.8g/t gold from 198m to EOH, including;

29m at 5.1g/t gold from 198m.

A program of follow-up diamond drilling focused on establishing the true thickness, tenor and extent of the gold mineralisation in unweathered basement rock to help define the potential of the A-Zone system concluded just before Christmas.

It didn’t take long for the news to flow from the drill bit with diamond drill hole 18MODD008 returning an exceptionally thick intercept with a high-grade core on the southern-most basement drill traverse at A-Zone of:

242m at 1g/t gold from 61m down hole, including;

45m at 3.3g/t gold from 70m, including;

9m at 4.6g/t gold from 70m and 18.9m at 4.7g/t gold from 96.3m.

Other intersections from 18MODD008, included:

5.8m at 4.5g/t gold from 199.8m.

“The diamond drilling is confirming the grade and thicknesses seen in the RC drilling as well as extending the mineralisation where it remains open along strike,” Musgrave Minerals managing director Rob Waugh told The Resources Roadhouse.

“Our southern-most drill hole 18MODD012 returned thick mineralisation with a high-grade core at A-Zone and demonstrated that the basement mineralisation remains open and untested to the south and at depth.”

18MODD012
128.1m at 0.5g/t gold from 133.3m down hole, including 32m at 1.5g/t gold from 133.3m, including 9.7m at 3.1g/t gold from 133.3m.

“That encouraged us to ramp up our diamond drilling so we could step out and test the limits of the mineralisation along strike with the aim to further outline the size and grade of this potentially large and exciting gold discovery,” Waugh continued.

As part of the program, drill hole 18MODD005 was conducted on the discovery cross section as a scissor hole.

This hole also confirmed the previously released RC results and steep east dip of the mineralisation, intersecting:

80m at 1.3g/t gold from 102.2m downhole, including;

20m at 4.5g/t gold from102.2m, including higher-grade zones of:

2.6m at 11g/t gold from 102.8m; and

7.4m at 6.5g/t gold from 114.9m.

From the drilling carried out to date, Musgrave has determined the A-Zone consists of a broad regolith gold halo extending up to 300m wide and covering a strike extent of over 800m.

The fresh rock gold mineralisation beneath the regolith halo is steeply east dipping and open to the north, south and down dip below approximately 50m of transported cover.

The A-Zone mineralisation is proximal to a tonalite-mafic contact within a foliated silica-sericite-carbonate-albite-pyrite alteration zone with multi-phase quartz veining.

Having scored such encouraging results, it was no surprise the company was able to raise $5.5 million to accelerate drilling of the new Lake Austin North gold discovery, even at a time when the market was suffering pre-Christmas doldrums.

“The funding enabled us to secure three drill rigs in the new year to accelerate drilling at the new Lake Austin North discovery as well as our other Cue project targets,” Waugh said.

While most folk were still on holidays, Musgrave Minerals was delivering new reports to the ASX as its next round of diamond drilling extended the basement gold mineralisation at A-Zone to more than 350m in strike where it currently remains open in all directions.

Musgrave Minerals’ drilling campaign shows no signs of slowing down with a phase 2 program of diamond drilling at A-Zone, Lake Austin North already underway.

This program will consist of a minimum of 15 drill holes for approximately 4,000m and drilling will continue until April.

The company anticipates receiving its next lot of assay results in late February.

In concert with the diamond drilling, the company is conducting a regional lake aircore drilling program to define the extents of the A-Zone and C-Zone mineralisation to enable accurate diamond drill targeting along strike.

The lake aircore program is also carrying out preliminary first pass testing of new lake gold targets.

While all this is developing, Musgrave Minerals is continuing negotiations with Westgold Resources (ASX: WGX) regarding a mining and processing profit sharing agreement over the existing gold resources at Cue that does not include Lake Austin North.

Musgrave Minerals signed a non-binding Term Sheet with Westgold Resources last year that provides a near term development pathway for the existing gold resources at the Cue project.

The Term Sheet outlines a Mine Management and Profit Sharing arrangement, under which Musgrave would receive 50 per cent of profits from operations that would be financed, managed and operated by Westgold.

The arrangement would be restricted to the existing JORC code-compliant gold resources at the Lena, Break of Day, Jasper Queen, Gilt Edge and Rapier South deposits on Musgrave’s 100 per cent-owned tenements at Cue.

Musgrave would retain 100 per cent of the exploration interests and upside outside of the defined resources.

“This deal with Westgold reduces the technical and capital risk for Musgrave and provides the potential for a near term development option,” Waugh explained.

“Musgrave would retain a 100 per cent interest in all the exploration upside and the potential development is expected to generate positive cashflow that can be utilised to fund exploration, resource growth and discovery for the benefit of Musgrave shareholders.”

“The relationship would also enable Musgrave to focus on its exploration strengths and accelerate our drilling programs across a range of high-grade targets, including our exciting gold discovery at Lake Austin North.”

Musgrave Minerals has plenty of confidence in the potential to extend existing mineralisation and discover new mineralisation within the Cue project area, which it believes it has demonstrated by its combined successes at Break of Day, Lena and now, Lake Austin North.

In a nutshell, Musgrave is exploring for systems of a size that have the potential to deliver a substantial Resource increase and may in the future define a stand-alone operation.

 

Musgrave Minerals Ltd (ASX: MGV)
…The Short Story

HEAD OFFICE
Ground Floor
5 Ord Street
West Perth WA 6005

Ph: +61 8 9324 1061

Email: info@musgraveminerals.com.au
Website: www.mugraveminerals.com.au

DIRECTORS
Graham Ascough, Rob Waugh, Kelly Ross, John Percival

 

Like Stories Of Old: Southern Nights Has More to Tell

THE INSIDE STORY: Since discovering the high-grade zinc-lead-silver Southern Nights prospect in October 2017, Peel Mining (ASX: PEX) has confirmed it to be one of Australia’s most important zinc polymetallic discoveries.

The original discovery came on the back of some good old-fashioned detective work carried out on historic data, from which Peel Mining identified a near surface oxide gold zone, beneath which sat some supergene copper, gold and silver.

However, the primary mineralisation that caught the company’s attention was the deeper zinc-lead-silver rich massive sulphide.

An 18-hole program validated the historical results, demonstrating around 300 metres of strike and a system defined to 350 metres below surface and open in all directions.

Furthermore, the alteration and mineralisation in the drill core indicated this was likely to be a much larger system than initially thought.

Peel was encouraged to conduct further exploration, primarily geophysics conducting aeromag, surface EM, IP and gravity surveys that led to the discovery of the Southern Nights deposit.

Subsequent drilling produced high-grade mineralised intercepts at Southern Nights, and from the intervening zone between Wagga Tank and Southern Nights.

Most importantly, the drilling confirmed the Wagga Tank and Southern Nights deposits to be linked together, essentially as parts of one large mineral system.

Peel Mining’s most recent drilling at the Wagga Tank-Southern Nights project have provided more evidence to support the company’s growing belief in the project to be emerging as one of the most significant zinc polymetallic discoveries in Australia in recent years.

Assay results Peel recently received for drilling completed prior to the Christmas/New Year shutdown returned multiple new thick, high-grade zinc-lead-silver mineralised intercepts from the Southern Nights Central Zone, expanding the geometry of the known zinc-rich mineralisation.

Three drillholes: WTRCDD165, WTRCDD166 and WTRCDD167 were completed as part of an infill and extensional resource definition drilling program and were specifically designed to target the Southern Nights Central Zone where a coherent body of high-grade mineralisation is taking shape.

Assays from the Southern Nights Central Zone drilling encountered thick, high-grade intercepts including:

WTRCDD166
40 metres at 10.2 per cent zinc, 2.83 per cent lead, 0.61 per cent copper, 49 grams per tonne silver, 1.04g/t gold from 365m, including 16.21m at 16.91 per cent zinc, 5.01 per cent lead, 0.43 per cent copper, 87g/t silver, 0.98g/t gold from 366.23m, and

5.63m at 17.23 per cent zinc, 3.75 per cent lead, 1.02 per cent copper, 49g/t silver, 1.44g/t gold from 392.42m;

WTRCDD165
26.63m at 5.39 per cent zinc, 1.36 per cent lead, 0.2 per cent copper, 48g/t silver, 0.34g/t gold from 217.37m including 12m at 9.28 per cent zinc, 1.99 per cent lead, 0.19 per cent copper, 59g/t silver, 0.37g/t gold from 218m, and

5.5m at 7.21 g/t gold, 0.59 per cent copper, 13g/t silver, 0.78 per cent zinc, 0.14 per cent lead from 325m to EOH; and

WTRCDD167
13.17m at 7.78 per cent zinc, 3.6 per cent lead, 0.12 per cent copper, 248g/t silver, 0.55g/t gold from 329m, including 9m at 10.81 per cent zinc, 5.11 per cent lead, 0.18 per cent copper, 343g/t silver, 0.75g/t gold from 330m.

Further assays for drillholes WTRCDD153 and WTRCDD157 extended previous high-grade mineralised intercepts, returning intersections of:

WTRCDD153
20.65m at 9.92 per cent zinc, 4.83 per cent lead, 0.51 per cent copper, 104g/t silver, 0.53g/t gold from 355.35m, including 8.29m at 16.91 per cent zinc, 10.26 per cent lead, 0.7 per cent copper, 210g/t silver, 0.63g/t gold from 355.35m; and

WTRCDD157
53m at 7.43 per cent zinc, 3.46 per cent lead, 1.48 per cent copper, 114g/t silver, 1.47g/t gold from 218m, including 18.1m at 20.37 per cent zinc, 9.77 per cent lead, 0.36 per cent copper, 238g/t silver, 1.09g/t gold from 218m, and

18m at 3.04 per cent copper, 2.49g/t gold, 81g/t silver, 0.93 per cent zinc, 0.06 per cent lead from 252m.

The copper-gold mineralisation intersected in WTRCDD157 is the most substantial copper-gold intercept Peel Mining has achieved to date at Wagga Tank-Southern Nights.

The zinc-rich mineralised intercepts Peel Mining has encountered at Southern Nights Central has enabled the company to interpret the presence of an important zone of very high-grade mineralisation.

The true widths of mineralisation encountered has been estimated at about 70 to 80 per cent of the downhole widths.

The high-grade mineralised zone is thought to be covering up to around 180 metres of strike and has been defined from approximately 120m below surface to around 350m below surface.

Importantly, this mineralisation remains open downdip/plunge.

Peel is eager to continue to target this area with close-spaced infill drilling to better define the geometry and scale of the high-grade mineralisation in anticipation of the commencement of a scoping study.

Peel is carrying out drilling, comprising approximately 20,000m of RC and diamond drilling, designed to enable the completion of a maiden JORC-compliant mineral resource estimate by the end of the 2018/19 financial year.

The program is also designed to test for extensions to the mineralised system, which remains open along strike and at depth.

Two multi-purpose (RC/diamond) drill rigs have been drilling away on site to systematically infill and extend the current two-kilometre long footprint of the Wagga Tank-Southern Nights mineral system.

The program has revisited drillhole WTRCDD006, which was extended with further diamond drilling resulting in the intersection of zinc-lead-silver mineralisation.

Drillhole WTRCDD006 was originally drilled in 2016, however, this time it was targeted at the southern end of the Wagga Tank deposit to return a mineralised intercept of:

19.3m at 7.32 per cent zinc, 3.38 per cent lead, 0.3 per cent copper, 183g/t silver, 0.69g/t gold from 243m, including 12m at 10.36 per cent zinc, 4.75 per cent lead, 0.2 per cent copper, 265g/t silver, 0.71g/t gold from 250.3m.

Although the Wagga Tank-Southern Nights project represents a potentially major zinc-rich polymetallic Cobar-type discovery and is currently the company’s primary focus, Peel Mining boasts a healthy portfolio of projects with just as much potential.

Mallee Bull is an advanced copper- polymetallic deposit that is subject to a feasibility study; the deposit remains open in many directions.

It contains a JORC compliant Mineral Resource Estimate of 6.76 million tonnes at 1.8 per cent copper, 31 grams per tonne silver, 0.4g/t gold, 0.6 per cent lead and 0.6 per cent zinc (2.6% copper equivalent) containing approximately 119,000 tonnes of copper, 6.6 million ounces silver, 83,000 ounces gold, 38,000 tonnes lead and 38,000 tonnes zinc (175,000t copper equivalent) (using a 1% copper equivalent cutoff).

The Cobar Superbasin project Farm-in Agreement with Japan Oil, Gas, and Metals National Corporation (JOGMEC) presents funded, highly-prospective and strategic greenfields exploration potential and includes the Wirlong copper discovery.

Wirlong has returned drill results that in other portfolios would make it a higher-ranked project, such as:

WLDD001
9m at 8 per cent copper, 17 g/t silver, 0.21g/t gold from 616m and 38m at 1.18 per cent copper, 4g/t silver from 450m;

Peel Mining also holds a 36.3 per cent shareholding in Saturn Metals (ASX: STN) that offers exposure to the Apollo Hill gold project in the WA goldfields.

Peel originally acquired the Apollo Hill gold assets hoping to become a West Australian gold producer; however, its discoveries in the Cobar region of New South Wales shifted its focus.

 

Peel Mining Ltd. (ASX: PEX)
… The Short Story

HEAD OFFICE
Unit 1
34 Kings Park Road
West Perth WA 6005

Ph: (08) 9382 3955

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

DIRECTORS
Rob Tyson, Simon Hadfield, Graham Hardie

 

Price Charge Rattles Tassie Tin Prospects

THE INSIDE STORY: Discerning market watchers would be aware of Venture Minerals (ASX: VMS) as one of the Australian Securities Exchange’s diversified exploration plays.

Venture Minerals boasts a portfolio that includes a tin-tungsten resource at the company’s Mount Lindsay project in Tasmania and the Thor Volcanogenic Massive Sulphides (VMS) prospect in Western Australia.

Venture Minerals’ more advanced project is the company’s Mount Lindsay tin and tungsten project in Tasmania.

Venture has long declared Mount Lindsay as being one of the world’s largest undeveloped tin projects, one that is ideally placed to take advantage of the recent rise in both interest and the price of tin.

The 148 square kilometre Mount Lindsay project is in north-western Tasmania within the contact metamorphic aureole of the highly perspective Meredith Granite.

The project sits between the world class Renison Bell tin mine, which has produced more than 231,000 tonnes of tin metal since 1968, and the Savage River magnetite mine that has operated for over 50 years and currently produces approximately 2.5 million tonnes per annum of iron pellets.

Venture owns 100 per cent of the tenure that hosts both the Mount Lindsay tin-tungsten deposit and all surrounding prospects.

Since commencing exploration on the project in 2007, Venture has completed approximately 83,000m of diamond core drilling at Mount Lindsay, from which it has defined higher grade JORC compliant Measured, Indicated and Inferred Resources of 4.7 million tonnes at 0.4 per cent tin and 0.3 per cent tungsten with over 60 per cent in the Measured and Indicated categories.

Tin has been trending of late, hitting over the US$21,000 per tonne mark, which analysts attribute to lowering LME stocks and that most of the mining for tin is carried out in jurisdictions of dubious ethics.

There are plenty of uses in modern-day technology where tin is already a vital element, however, it is its ability to make lithium-ion batteries last more than three times longer, that has positioned it as an obvious choice to meet the anticipated demand for better batteries in mobile phones, cameras, iPads and other mobile devices.

Of course, the obvious market for tin, as all new age metals, is the use of lithium-ion batteries in hybrid and all-electric cars.

As part of Venture’s response to high demand from the fast-growing electric vehicle market, the company kicked off an underground scoping study on the high-grade portion of the tin-tungsten resource at the Mount Lindsay project.

“There has been quite a lot of work carried out to advance the scoping study we have underway at Mount Lindsay, the results which we should be able to release to the market very soon,” Venture Minerals managing director Andrew Radonjic told The Resources Roadhouse.

“We could get Mount Lindsay into production reasonably quickly given that much of the work we have used for the scoping study is from the previously completed feasibility study.”

The scenario Venture Minerals is considering for Mount Lindsay is for a one hundred per cent underground operation.

The company recognises such an operation would lower the environmental footprint and the associated environmental risk and possibly reduce its capex from around $200 million to closer to $50 million

The flowsheet changes would include a much smaller and simpler plant, processing a higher-grade primary-source tin ore body.

In other words, a project that is more permittable and more fundable, operating in a more ethical environment than where a large portion of the world’s tin currently comes from.

The Thor prospect is situated within Venture’s 281 square-kilometre Southwest tenement package 240 kilometres south of Perth in Western Australia.

It is hosted within the Balingup Gneiss Complex, an area that was first identified as being prospective for base and precious metals by a Joint Venture between Teck Cominco and BHP Billiton.

The Teck/BHP JV completed surface sampling and airborne EM surveys to discover the Kingsley base and precious metals deposit, a meta-VMS system in high-grade metamorphic rocks.

Venture’s nearby Thor prospect hosts a strong and coherent arsenic in laterite anomaly with locally elevated levels of copper, zinc, tin, bismuth, tungsten and antimony, elements that are typically elevated in VMS systems.

Following the discovery of the main Thor target as well as three additional anomalies to the east, Venture focused on extending and refining the known exploration targets.

Surface sampling extended the main Thor target and identified additional targets to the north and south, pushing the total combined strike to over 10km of EM and geochemical targets.

The company later acquired the northern extension, meaning Thor now encompasses some 24 strike kilometres of prospective geology, which already hosts multiple VMS style targets.

The most recent work carried out at Thor consisted of an EM survey to follow up on a recent discovery Venture made of massive and semi-massive sulfides in reconnaissance drilling targeting a large historic EM anomaly.

The EM survey confirmed multiple priority VMS targets with final processing of the new data demonstrating the strongest responses sit outside of the areas drilled by two earlier reconnaissance holes targeting the Thor VMS style sequence, where a 17-metre zone of disseminated, semi-massive and massive sulfides with up to 0.3 per cent zinc and 0.2 per cent copper was intersected.

As a result, Venture is currently drilling to test the highest ranked targets based on these high-resolution survey results.

Just to round out its project portfolio, Venture recently acquired a prospective 374sqkm land package, situated less than 10km north of the Golden Grove Camp, which is currently Western Australia’s hotspot for VMS deposits.

The region has some sturdy VMS credentials. In 2002, Golden Grove had a resources and production endowment of 40.2 million tonnes at 1.8 per cent copper, 0.9 per cent lead, 7.6 per cent zinc, 103g/t silver and 0.8g/t gold.

The mine was recently acquired by EMR Capital for US$210 million.

It has been around 25 years since any VMS exploration was undertaken on the Golden Grove North project and Venture has signalled its intentions to implement a systematic exploration approach, utilizing the latest techniques to explore for VMS style mineralisation.

Several compelling target areas have already been identified throughout the project, including historic shallow gold drill intersections of:

10 metres at 1.4g/t gold from 16m;
8m at 2.1g/t gold from 6m;
6m at 2.3g/t gold from 6m and 3m at 3.6g/t gold from 95m.

Strong gold and copper surface rock chip sampling results have also been noted, including:

9.4g/t gold;
7.4g/t gold and 6.6 per cent copper;
6.2g/t gold;
5.7g/t gold;
4g/t gold;
3.8g/t gold and 0.1 per cent lead;
7.6 per cent copper and 27g/t silver, 8 per cent copper; and
2 per cent copper.

An extensive land position of interpreted lithologies prospective for VMS style mineralisation for over 25 strike kilometres also remains, due to cover, largely untested.

Since acquiring the project in October 2018, Venture Minerals has been collating historical data in preparation for a geological re-interpretation of the project in order to generate new VMS target areas for a field validation program.

 

Venture Minerals Limited (ASX: VMS)
…The Short Story

HEAD OFFICE
Suite 3, Level 3
24 Outram Street
West Perth, WA, 6005

Ph: +61 8 6279 9428

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

DIRECTORS
Mel Ashton, Andrew Radonjic, Hamish Halliday, John Jetter

 

Southern Hemisphere Summer Time for Domestic Exploration

THE INSIDE STORY: Northern hemisphere seasonal conditions provide Blackstone Minerals (ASX: BSX) the ideal opportunity to stay home over the holidays and explore its domestic portfolio.

Blackstone Minerals’ major focus is the company’s BC cobalt project in British Columbia, Canada, however, it also has the emerging Silver Swan South gold project, located eight kilometres along strike of the five million-ounce Kanowna Belle gold mine near Kalgoorlie in Western Australia.

The Silver Swan South project comprises one exploration licence application E27/545 and six granted prospecting licences, P27/2191 – 2196 covering an area of 47.2 square kilometres and are located approximately 40 kilometres northeast of Kalgoorlie.

“Around this time of year, we start to focus more on our Australian assets,” Blackstone Minerals managing director Scott Williamson told The Resources Roadhouse.

“The reason for this is that there is substantial snow covering in Canada, so we can’t access our ground.

“This is not at all a bad outcome, as it does allow us to give the attention, we feel, our Silver Swan South gold project in Western Australia deserves.”

Results from Blackstone Minerals’ 2018 drilling campaign at the Silver Swan South gold project produced several encouraging results.

The company’s second phase aircore drilling program at Silver Swan South demonstrated its potential as being an emerging gold discovery hosting extensive gold mineralisation and basement geochemical anomalism.

The basement geochemistry contours at the project’s Black Eagle prospect are similar in size to the footprint of the nearby Kanowna Belle deposit.

The basement geochemical anomalisms at the Black Eagle deposit as well as at the Black Hawk prospect are located along the interpreted extension of the Fitzroy Shear Zone, which hosts the Kanowna Belle gold mine.

The drilling encountered gold mineralisation and extensive basement geochemical anomalism at the Black Eagle prospect, providing a result of:

SNAC070
10 metres at 3.2 grams per tonne gold from 68m within 15m at 2.2g/t gold from 64m to end-of-hole (EOH).

On the back of this result, Blackstone was able to promote the Black Eagle prospect to priority drill target status given that it combined with previous equally encouraging reconnaissance results of 3m at 3.5g/t gold from 60m and 3m at 2.6g/t gold from 52m from the Black Hawk prospect.

Although Blackstone Minerals is keen to identify the extent and source of the gold mineralisation at Silver Swan South, it is also eager to follow-up results of surface sampling of the target ultramafic unit that previously confirmed the presence of nickel sulphides (pentlandite).

“When we originally acquired this ground, we actually did so for its nickel potential,” Williamson said.

“We have a ten-kilometre ultramafic package, which is the host for komatiite-style nickel sulphides.

“This is the project the company originally listed on, because we liked what we saw in terms of nickel sulphide potential, so we are now going to revisit that nickel sulphide potential.”

Williamson intimated the impetus behind the company’s nickel sulphide drive stems from discussions it is having with a potential partner; a Korea-based battery metals-focused company.

“We are in early discussion with a Korean entity that is interested, not only in cobalt, which is our Canadian focus, but is also interested in nickel,” he said.

Once the Canadian snow melts, Blackstone will return to British Columbia to follow-up the impressive copper, gold and cobalt targets it identified by way of a soil sampling program undertaken on the company’s BC cobalt project (previously known as the Little Gem cobalt project).

The most recent work undertaken at the BC cobalt project consisted an extensive soil sampling program that identified several copper-gold-cobalt targets.

This program identified the Jewel copper-gold-cobalt prospect, located 1.1 kilometres north-northeast of the project’s original focus, the Little Gem prospect.

The new soil anomalies are greater than 1.5 kilometres long and coincide with IP targets indicating a possible large sulphide bearing body at depth.

These copper, gold and cobalt soil anomalies are located within a structural setting near the contact between the granodiorite and serpentinite that Blackstone considers to be analogous in geological setting to the deposits of the Bou-Azzer primary cobalt district in Morocco.

“We consider there to be forty-eight kilometres of that particular geology that delivered the Little Gem target,” Williamson explained.

“We are now referring to the area as the BC cobalt project, or BC Cobalt Belt.

“We have only tested one target – Little Gem – out of the entire belt at this stage.

“The key target to have now emerged for testing is the Jewel copper-gold-cobalt prospect.”

Surface rock chip samples taken at the Jewel prospect returned grades of up to 5.6 per cent copper and 5.1 per cent copper.

The BC project took further shape with the discovery of the Erebor cobalt-gold discovery, located 900m along an interpreted ultramafic trend to the south-west of the historic Little Gem adits.

Results from surface rock chip samples taken from the Erebor discovery returned assays recording grades of up to 2.3 per cent cobalt and 32 grams per tonne gold.

High-grade cobalt assays from surface rock chip samples taken from the Erebor discovery included:

2.3 per cent cobalt, 32 g/t gold and 1.1 per cent nickel;
1 per cent cobalt;
1 per cent cobalt;
0.6 per cent cobalt;
0.6 per cent cobalt;
0.5 per cent cobalt; and
0.4 per cent cobalt.

These were complemented by high-grade gold and copper assays recorded from surface rock chip samples from Erebor, including:

16.7g/t gold and 1.6 per cent copper;
10.4g/t gold; and
1.5 per cent copper.

Blackstone claims Erebor as the first discovery of significant cobalt-gold mineralisation in the region since prospectors discovered similar mineralisation at Little Gem in the 1930s.

The company believes the Erebor discovery further suggests the potential for the BC project to host multiple deposits akin to the Bou-Azzer primary cobalt district in Morocco.

Blackstone remains encouraged by the fact there has been very little modern-day exploration undertaken across the BC cobalt project since the activities carried out by the early prospectors at Little Gem.

Even since then the main activities have involved airborne geophysical surveys (including magnetic, radiometric and electromagnetic (EM) surveys) in the 1970s and a further two drill holes completed in 1986.

The mineral occurrence at the Jewel prospect supported some gold production from 1938 to 1940.

Cobalt contributes up to 60 per cent of the value of Lithium Ion Batteries (LIBs), which in turn accounts for greater than 50 per cent of global demand.

The projected role of LIBs in the emerging electric vehicle market makes them one of the more significant sources of power in the foreseeable future.

Analysts such as Bloomberg have forecast 55 per cent of vehicles sold by 2040 to be electric.

This statistic hits reality when compared to the current figure of just one per cent of global sales attributed to EVs.

Cobalt is expected to have a supply deficit as currently mining is only just meeting demand.

The cobalt price increased from US$10/lb (US$22,000/t) to US$40/lb (US$87,000/t) in recent times before falling to US$25/lb (US$55,000/t) due to seasonal factors.

Current prices are still well short of the 2008 high of US$52/lb (US$115,000/t) which was the last time cobalt was in deficit.

 

Blackstone Minerals Limited (ASX: BSX)
…The Short Story

HEAD OFFICE
Suite 3, Level 3
24 Outram Street
West Perth, WA, 6005

Ph: +61 8 9425 5217

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

DIRECTORS
Hamish Halliday, Scott Williamson, Andrew Radonjic, Michael Konnert, Stephen Parsons

 

New Gold Discovery Sharpens Exploration focus

THE INSIDE STORY: Numbers, particularly those that quickly increase Resources, are a cornerstone of exploration activities and for gold play Bellevue Gold (ASX: BGL) the numbers continue to add up.

Bellevue Gold has been rapidly increasing the known gold mineralisation around and along strike of the historic Bellevue Mine underground workings, known as the Bellevue Surrounds, at the company’s Bellevue gold project, located 400 kilometres north west of Kalgoorlie in Western Australia.

The Bellevue gold mine came with some pedigree, having been one of Australia’s highest-grade historical gold mines producing approximately 800,000 ounces of gold at 15 grams per tonne gold before it closed in 1997.

After acquiring the project, Bellevue Gold wasted little time in releasing a maiden 500,000 ounces at 8.2 grams per tonne gold Resource for the project, just to remind market watchers of the project’s existence and the potential it holds for possible rapid growth.

This was followed just two months later with the release of an increased Inferred Resource estimate of 1.04 million ounces at 12.3g/t gold.

This included a maiden estimate for a new discovery made by the company at the Viago Lode, situated less than 150 metres from the historic Bellevue underground workings, of 550,000 ounces at 22g/t gold.

The relatively small amount of work already completed at Viago has already defined a bonanza grade zone in excess of 120m in the central portion of the new discovery zone returning results of:

DRDD069
3m at 85.9 grams per tonne gold from 597m, including 0.5m at 445g/t gold from 598m;

DRDD073
6.4m at 27.9g/t gold from 587.6m, including 2.8m at 62.8g/t gold from 587.6m; and

DRDD013
4.3m at 58.8g/t gold from 575.5m.

The Viago bonanza zone is characterised by massive to semi-massive pyrrhotite mineralisation with visible disseminated gold over widths up to several metres.

Subsequent Down Hole Electro-Magnetic (DHEM) surveying indicated potential for multiple repeats of these high-grade ore zones within the overall mineralised envelope that are analogous to the high-grade ore zones previously mined at Bellevue.

The company holds the scale of high-grade mineralisation at Viago in high regard, with it having been defined over 800m of strike and around 200m across strike and remaining completely open.

The mineralised shear zone has been intersected for a further 100m of potential strike with narrow high-grade intervals intercepted in scout holes testing the northern and southern extremities.

The current geological interpretation is that the high-grade mineralisation forms gently plunging ore shoots consistent with the high-grade plunges identified at the Tribune Lode and the Bellevue Mine.

The company believes recent drilling has proven the Viago Lode could be a company making, high-grade lode style gold discovery.

Even in its ‘newly-discovered’ state, the Viago Lode is an attractive prospect, given that all metal Bellevue reported from the Viago Lode in the Resource upgrade sits between 470m and 590m from surface.

No Resource estimates for previously reported deposits/lodes of the Bellevue project were included in the update.

This provides a good deal of blue sky for any further updates, which Bellevue has flagged to be expected early in 2019 with the company confident of significantly raising the Resource at Bellevue.

“We have just recommenced drilling on site with three drill rigs, and that will soon become four rigs,” Bellevue Gold executive director Steve Parsons told The Resources Roadhouse.

“Those rigs will be stepping out on the Bellevue Lode and stepping out on the Viago Lode.

“So, we expect there to be a fairly positive news flow regarding drilling results over the next few months.

“The next thing will be a Resources upgrade…we said last year that we anticipated a Resource upgrade to be released in the first quarter of this year.

“The Resource currently stands at just over one million ounces at 12 grams per tonne gold and we expect to grow that at the same rate we were able to achieve last year.

“From there we hope to release a further upgrade mid-year, around June or July.”

The current drilling is following up significant results Bellevue achieved from 11 holes it drilled into the Lodes hosted within the historic Bellevue Mineralised Zone directly to the north of the Viago Lode discovery.

That drilling targeted the southern extension of known mineralisation of the unmined section of the Bellevue Lode as well as testing an existing void from earlier stope development undertaken at the Bellevue mine to confirm mineralisation beyond the existing mined areas.

The drilling confirmed the existence of high-grade unmined gold mineralisation that returned highly-encouraging results demonstrating new parallel Lodes only a few metres from the historic Bellevue Underground workings.

Results included:

DRDD082
0.45 metres at 33.2 grams per tonne gold from 313.95m (New Parallel Lode) and 2.4m at 13.1g/t gold from 417.1 m, including 0.7m at 71g/t gold (New Parallel Lode);

DRDD084
1.6m at 12.5g/t gold from 215.5m (New Parallel Lode) and 0.8m at 2g/t gold from 320.4m (Bellevue Lode);

DRDD085
1.3m at 35.2g/t gold from 75.6m (Hamilton Lode) and 3.9m at 16g/t gold from 191.1m (Bellevue Lode);

DRDD087
0.7m at 17g/t gold from 124.9m (New Parallel Lode) and 0.7m at 11.6g/t gold from 160.6m (New Parallel Lode) and 0.6m at 25.6g/t gold from 202.4m (Bellevue Lode);

DRDD089
1.1m at 9.3g/t gold from 143.9m (Hamilton Lode) and 1.2m at 19.3g/t gold from 208.2m (Henderson Lode) and 2.4m at 26.1g/t gold from 269.9m (Bellevue Lode);

DRDD090
3.1m at 5.6g/t gold from 170.8m (Hamilton Lode);

DRDD091
6.4m at 5.4g/t gold from 90.6m (Tribune Lode) and 0.3m at 10.4g/t gold from 378.4m (New Parallel Lode); and

DRDD092
3.5m at 12.3g/t gold from 411.8m (New Parallel Lode).

It is worth noting that this round of drilling also intercepted several previously unknown mineralised positions, extending mineralisation within the Bellevue Shear 230m further south of previously tested extents of the underground workings.

Modelling completed by the company has indicated the Bellevue Shear to be completely open in this direction and as such has emerged as a high-priority follow up drill target.

As essential as its drilling program is to its exploration activities, Bellevue Gold has also been digitizing the project’s historic mined void models and reconstructing the Bellevue mineralised envelope at the old underground mine.

From this the company has determined that a healthy amount of mineralised material was left unmined during the previous operation due to the mining of only the ‘bonanza-style’ super-high-grade ore shoots and leaving the proximal ore behind.

Bellevue Gold was able to verify this theory by contacting previous mine management and completing further analysis of the mine closure resource void model.

A small portion of this remnant material is included in the current Bellevue global resource estimate and the company considers there to be potential to extend the known mineralisation along strike to both the north and south.

“The results from the most recent drilling at the historic Bellevue underground mine area as well as mineralised extensions immediately to the south of the underground workings confirmed our view that a significant amount of high-grade gold mineralisation remains in and around the historic Bellevue Surrounds underground area,” Parsons said.

“This remaining gold mineralisation is also very close to existing underground development infrastructure, which although is currently flooded, won’t be difficult to re-establish.”

 

Bellevue Gold Limited (ASX: BGL)
…The Short Story

HEAD OFFICE
Suite 3, Level 3
24 Outram Street
West Perth, WA, 6005

Ph: +61 8 6424 8077

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

 

Targets Starting to Shine at Little Gem

THE INSIDE STORY: Blackstone Minerals (ASX: BSX) is progressing the development of the company’s world-class Little Gem cobalt-gold project in the Canadian province of British Columbia.

To say Blackstone Minerals has been busy throughout the month of October would be an understatement as a steady flow of news from the Little Gem project continued to keep market watchers interested as advances emerged.

The company released results from phase two of a completed IP survey at the Jewel copper-gold-cobalt prospect, located 1.1 kilometre north-northeast of the Little Gem prospect.

The Jewel copper-gold-cobalt prospect is associated with the high-grade Jewel underground mine with historic production of 51 tonnes mined between 1938 and 1940.

This production was impressive, returning average mined grades of 73 grams per tonne gold and 0.4 per cent copper with highest grades assayed up to 243g/t gold and 19.2 per cent copper.

These historic grades were supported by Blackstone Minerals’ rock chip samples of up to 98g/t gold, 3.2 per cent copper, 0.1 per cent cobalt.

At over one kilometre long, the recently-defined IP anomalies are much larger and stronger than phase one anomalies Blackstone had previously announced and were interpreted by the company to indicate a large sulphide bearing body associated with the Jewel copper-gold-cobalt prospect.

The new large-scale IP anomalies were also judged to be coincidental with strong geochemical anomalies and favourably located within a major structural setting near the contact between the granodiorite and serpentinite that Blackstone has previously thought as an analogous geological setting to the deposits of the world class Bou-Azzer primary cobalt district in Morocco.

As the Jewel prospect has never been drill tested, Blackstone immediately designated these new, high quality IP anomalies, to be priority drill targets.

“Our field work indicates Jewel is associated with anomalous cobalt mineralisation and with the recent Erebor Cobalt-Gold discovery nearby the Little Gem project is shaping up to be a world class cobalt district,” Blackstone Minerals managing director Scott Williamson said.

“The Petrophysical analysis we completed on core samples from Little Gem indicate the sulphide alteration associated with the cobalt and gold mineralisation at Little Gem has a high IP response.

“These IP/ resistivity surveys have highlighted targets that are consistent with the measured response from Little Gem but significantly larger in size.”

The sulphide ore that was mined at the Jewel mine in the late-1930s was unable to be substantially beneficiated by concentration, resulting in gold values that were not high enough to make a profit by way of direct shipping ore (DSO) to smelters.

Only a small tonnage of ore was extracted at Jewel, after which the claims lapsed and there was no further work conducted at the prospect until Blackstone Minerals acquired its BC cobalt project approximately 12 months ago.

Since acquiring the project, Blackstone has completed an extensive program of prospecting, stream sediment and soil sampling with the geochemical results coinciding and supporting the large-scale IP chargeability and resistivity signatures at Jewel.

The next news to emanate from Blackstone Minerals’ newswire was the receipt of assay results, confirming its Erebor discovery at the Little Gem project.

The results stemmed from surface rock chip samples taken from the Erebor cobalt-gold discovery, located 900 metres along an interpreted ultramafic trend to the south-west of the historic Little Gem adits.

Blackstone claimed the high-grade samples represent the first discovery of substantial cobalt-gold mineralisation in the region since prospectors found similar mineralisation known as Erythrite in the 1930s by identifying a pink cobalt-bloom on weathered mineralisation which led to the discovery of the Little Gem cobalt-gold project.

High-grade cobalt assays from surface rock chip samples taken from the Erebor discovery included:

2.3 per cent cobalt, 32 grams per tonne gold and 1.1 per cent nickel;
1 per cent cobalt;
1 per cent cobalt;
0.6 per cent cobalt;
0.6 per cent cobalt;
0.5 per cent cobalt; and
0.4 per cent cobalt.

High-grade gold and copper assays were also recorded from surface rock chip samples taken from the Erebor discovery, including:

16.7g/t gold and 1.6 per cent copper;
10.4g/t gold; and
1.5 per cent copper.

“These high-grade assays confirm the Erebor discovery as the first known occurrence of high-grade cobalt-gold mineralisation in the region since prospectors identified similar mineralisation in the 1930s, which led to the initial discovery of Little Gem,” Williamson said.

“The Erebor discovery opens up the potential for multiple targets similar to the Bou-Azzer primary cobalt district in Morocco and combined with the recent IP survey results see the Bridge River Mining Camp emerging as a potential world class cobalt belt located in a tier one mining jurisdiction in British Columbia, Canada.”

More news, however, was to emerge from the Jewel prospect in the form of results from further soil sampling that identified major copper-gold-cobalt targets centred on the Jewel prospect.

The new soil anomalies are greater than 1.5 kilometres long and coincide with the earlier IP survey results that indicated a large sulphide bearing body associated with the prospect.

The later surface rock chip samples taken from the Jewel prospect delivered high-grade assay results including:

5.6 per cent copper; and
5.1 per cent copper.

Blackstone signalled these results, combined with its earlier efforts, had made the Jewel prospect the company’s highest priority target to be drill tested at the earliest opportunity.

“Our soil sampling program has identified a major copper-gold-cobalt target at Jewel which coincides with the large IP anomaly we believe to be a substantial sulphide bearing body at depth,” Williamson said.

“We are eagerly anticipating the drilling of these new targets so as to better understand the primary source of the high-grade copper-gold-cobalt mineralisation at Jewel, Little Gem and Erebor.

“We look forward to further results from our 2018 fieldwork program as we continue to unlock what is shaping up to be a potential world class cobalt district.”

Blackstone has already completed an initial six diamond drill holes at Little Gem and at the time of writing was awaiting assay results for the remaining five diamond drill holes.

Drilling to date has intersected the Little Gem structure within metres of the interpreted target.

The 2018 drilling to date has consistently intersected a broad alteration zone, highlighting potential for a major hydrothermal system at Little Gem.

Results from the first six drill holes at Little Gem include:

LGD17-001R1
1.1m at 3 per cent cobalt and 44g/t gold within 4.3m at 1 per cent cobalt and 15g/t gold;

LGD18-0022
1m at 1.2 per cent cobalt and 5g/t gold within 3.2m at 0.8 per cent cobalt and 4g/t gold;

LGD18-0033
0.4m at 1.2 per cent copper, 5g/t gold and 0.12 per cent cobalt within 1m at 0.5 per cent copper, 4g/t gold and 0.08 per cent cobalt; and

LGD18-0053
0.8m at 0.6 per cent cobalt and 9g/t gold within 1.6m at 0.4 per cent cobalt and 5g/t gold.

The carried out by Blackstone since acquiring Little Gem has also led to the discovery of the high-grade Roxey gold-copper prospect.

The Roxey gold-copper prospect is located 1.5km west-southwest of the Little Gem prospect and was visually identified by Blackstone during its due diligence site visit when rock chip samples were taken within the target area which assayed up to 24g/t gold, 1.9 per cent copper and 24g/t silver.

 

Blackstone Minerals Limited (ASX: BSX)
…The Short Story

HEAD OFFICE
Suite 3, Level 3
24 Outram Street
West Perth, WA, 6005

Ph: +61 8 9425 5217

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

DIRECTORS
Hamish Halliday, Scott Williamson, Andrew Radonjic, Michael Konnert, Stephen Parsons

 

Mt Lindsay Tin Continues to Hold Venture Minerals’ Gaze

THE INSIDE STORY: Venture Minerals (ASX: VMS) is hoping the lithium-focused electronic car boffins can find room to introduce tin to their conversation.

With lithium dominating the battery world mind-set, some of what most pundits consider as the more traditional commodities, have been forced to share the back seat of the anticipated electric car revolution.

Nickel is one such example. The metal was fast becoming one of John Paul Young’s, Yesterday’s Heroes until it received a boost from an off-the cuff remark by Tesla boss Elon Musk in 2017.

Tin is another of these old-school commodities that is well-placed to enjoy a long-term future as an innovative, competitive and sustainable material.

There are plenty of uses in modern-day technology where tin is already a vital element.

These include solar panels where tin is making its mark on the next generation of cheaper solar cell materials, making ready to replace more expensive and nowhere near as abundant elements.

Tin has also been shown to make lithium-ion batteries last more than three times longer, positioning it as an obvious choice to meet the anticipated demand for better batteries in mobile phones, cameras, iPads and other mobile devices.

Of course, a new market for tin, as it is for all metals involved, is the use of lithium-ion batteries in hybrid and all-electric cars.

Tin gained a lot of domestic credence earlier this year when global powerhouse Rio Tinto presented at a battery metals conference in Perth.

Part of the Rio presentation was a slide showing the metals most impacted by modern technologies, ranked by the Massachusetts Institute of Technology (MIT).

Although Rio was using the information to push its Jadar lithium project in Serbia, using the MIT ranking to show lithium as the second most impacted metal, with the tin sitting above the market’s recent hot commodity, separated by a good amount of daylight.

MIT credited the result to tin’s applications across a range of modern technologies, ranging through autonomous and electric vehicles, advanced robotics, renewable energy, advanced computation and information technology.

Venture Minerals recognised this as the ideal time to raise the flag on the company’s Mount Lindsay project in Tasmania and immediately set a detailed reassessment of the project’s high-grade tin and tungsten Resource base in motion.

Venture Minerals has long-touted Mt Lindsay as being one of the world’s largest undeveloped tin projects, one that is ideally placed to take advantage of the recent rise in both interest and the price of tin.

The 148 square kilometre Mt Lindsay project is in north-western Tasmania within the contact metamorphic aureole of the highly perspective Meredith Granite.

The project sits between the world class Renison Bell tin mine, which has produced more than 231,000 tonnes of tin metal since 1968, and the Savage River magnetite mine that has operated for over 50 years and currently producing approximately 2.5 million tonnes per annum of iron pellets.

Venture owns 100 per cent of the tenure that hosts both the Mt Lindsay tin-tungsten deposit and all surrounding prospects.

Since commencing exploration on the project in 2007, Venture has completed approximately 83,000m of diamond core drilling at Mt Lindsay, from which it has defined JORC compliant Measured, Indicated and Inferred Resources of 4.7 million tonnes at 0.4 per cent tin and 0.3 per cent WO3 with over 60 per cent in the Measured and Indicated categories.

A Feasibility Study completed on the project with comprehensive metallurgical test-work and post feasibility determined a very high-grade 75 per cent tin concentrate result Venture considers to likely attract price premiums.

In 2012, Venture Minerals claimed a major new high-grade tin discovery only six kilometres from the Mt Lindsay project when drilling encountered a 47-metre intersection of tin mineralisation at the Big Wilson prospect that included: 17.4 metres at 2 per cent tin, including 4m at 5.6 per cent tin.

Venture Minerals interpreted the results as being a combination of high-grade skarn style mineralisation and, typically large tonnage, greisen style mineralisation.

The high-grade nature of the earlier Big Wilson drilling opens depth opportunities, as these grades would be amenable to underground mining.

The company has made its intentions clear that it will be considering strategies to optimise the higher-grade portions at Mount Lindsay.

Venture will now look to focus on assessing the underground mining potential of this high-grade resource.

“Knowing that the Mount Lindsay project has a large tin Resource that could be harnessed to meet applications in Electrical Vehicles and renewable energy has refocussed the company to revisit its approach in developing this asset,” Venture Minerals managing director Andrew Radonjic told The Resources Roadhouse.

“Mt Lindsay is a very advanced project in Tasmania that has plenty of Resource tonnes but has a higher-grade core that we could approach from an underground perspective.

“We have a fair degree of confidence in developing an underground operation there.

“Instead of originally looking to maximise the Resource through mostly open pit mining 14 million tonnes of ore we would more likely be looking at mining four million tonnes from purely underground which we believe is the best way of bringing forward tin and tungsten production from Mount Lindsay.

“We also have a number of high-grade targets that we can follow up.”

While the potential of Mt Lindsay continues to mount, Venture Minerals is focusing most of its current attention on the company’s Thor VMS prospect in Western Australia.

Venture has identified nine priority VMS (Volcanogenic Massive Sulphide) drill targets from preliminary results it received from an EM (Electromagnetic) survey carried out at the prospect.

Venture’s continued exploration efforts on Thor follow its recent discovery of massive and semi-massive sulphides in reconnaissance drilling targeting a large historic EM anomaly.

The company anticipates final processing of the new detailed survey, which utilised the latest EM technology, will shortly be complete, from which it will prioritise the targets in preparation for immediate drilling.

There has been a great deal of activity at Thor in recent times, including:

Completion of a high-resolution Xcite™ Airborne EM survey by New Resolution Geophysics (NRG) over the Thor prospect delivering the nine priority VMS style drill targets;

Confirmation of large VMS style target sequence extending over 20 kilometres of strike;

A maiden drill program that intersected a 17m zone of disseminated, semi-massive and massive sulphides using portable XRF confirming the presence of zinc and copper; and

Recent assays confirming the presence of zinc and copper with core samples containing up to 0.3 per cent zinc and 0.2 per cent copper.

Venture has now commenced work on the recently granted northern tenement at Thor (E70/5067), which holds 14 strike kilometres of the Thor VMS target zone with a surface geochemical sampling program.

Thor has the same EM and geochemical signature as Teck’s adjacent VMS Kingsley discovery, which is one of several VMS occurrences in the Archean Yilgarn Craton of Western Australia with the Golden Grove Camp (Mine), 450kms north-east of Perth, being the prime example with over nine VMS deposits spread over 13kms of strike.

“The early success we enjoyed from the EM survey was highly-encouraging,” Radonjic said.

“We are now looking forward to testing some of the nine priority drill targets as soon as we can.”

 

Venture Minerals Limited (ASX: VMS)
…The Short Story

HEAD OFFICE
Suite 3, Level 3
24 Outram Street
West Perth, WA, 6005

Ph: +61 8 6279 9428

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

DIRECTORS
Mel Ashton, Andrew Radonjic, Hamish Halliday, John Jetter

 

Musgrave Minerals Making Loud Drillbit Statements

THE INSIDE STORY: Musgrave Minerals (ASX: MGV) has been shouting loud and proud as it progresses its Cue gold project in the Murchison region of Western Australia.

Musgrave Minerals has released a steady stream of positive news announcements from its 100 per cent-owned tenure at the Cue project, which consists of the Moyagee gold and Hollandaire copper resources.

The Cue project hosts a combined JORC (2012) and JORC (2004) compliant total Mineral Resource base of 4.83 million tonnes at 2.84 grams per tonne gold for 440,000 ounces contained gold across multiple deposits.

The Hollandaire copper project hosts a JORC (2004) compliant total Mineral Resource base of 2 million tonnes at 1.9 per cent copper for 38,800 tonnes of contained copper, 2.7 million tonnes at 5.8g/t silver for approximately 495,000 ounces contained silver, and 0.52 million tonnes at 1.35g/t gold for 22,500 ounces contained gold. Hollandaire also hosts a JORC (2004) compliant total Ore Reserve of 442,000 tonnes at 3.3 per cent copper for 14,600 tonnes of contained copper, 574,000 tonnes at 8.2g/t silver for approximately 151,000 ounces contained silver.

Work carried out by Musgrave has enabled it to define a 20-kilometre-long prospective gold corridor that hosts the Break of Day and Lena gold resources.

Break of Day hosts 868,000 tonnes at 7.15 grams per tonne gold for 199,000 ounces of gold.

The Lena deposit currently boasts 2.68 million tonnes at 1.77g/t gold for 153,000 ounces of gold.

Musgrave intent is to develop a low-cost operation from the current resource base, capable of delivering strong financial returns.

The idea is to largely self-fund exploration at high priority targets to locate large gold systems capable of delivering significant resource increases, that could in the future, support a stand-alone operation.

The latest news – at the time of writing – to emanate from Cue was drilling progress at the Lake Austin North prospect.

This drilling program consists of approximately 30 RC drill holes for 7,500m and is being undertaken to test down dip of previously reported regolith gold mineralisation the company intersected whilst carrying out a round of aircore drilling.

The Lake Austin North prospect is located three kilometres north of the Break of Day gold deposit at the Cue project and is the latest in a series of targets to return compelling drilling results.

Musgrave Minerals recently reported assay results from the first two reverse circulation (RC) basement drill holes into the A Zone target at the Lake Austin North prospect.

Drill hole 18MORC039 intersected an impressive:

42 metres at 3.2 grams per tonne gold from 108m downhole, including 24m at 5.1g/t gold from 114m, including a higher-grade core of 6m at 12.6g/t gold from 126m.

Musgrave explained the initial sampling was undertaken using six metre composites with the above intersections encountered within a broad gold halo of lower-grade gold mineralisation of 84m at 1.7g/t gold from 84m depth.

Drill hole 18MORC040, collared 75m west of 18MORC039 intersected a thick broad regolith gold halo assaying:

60 metres at 0.14g/t gold from 72m downhole and terminated in low-grade gold mineralisation (18m at 0.14g/t gold from 222m downhole to EOH).

This was situated close to the depth projection of the high-grade gold lode intersected in 18MORC039.

Drill hole 18MORC040 terminated in mineralisation at the depth capability of the rig and Musgrave noted that a diamond tail would be completed to test the downward extent of this high-grade zone.

Drill holes 18MORC039 and 18MORC040 are the first holes Musgrave has drilled into the fresh basement below the A Zone target, which is open to the north, south and down dip.

“This great result demonstrated the potential for the A Zone target to host thick, high-grade gold mineralisation,” Musgrave Minerals managing director Rob Waugh said.

“The extent of the basement gold mineralisation is not yet defined and remains completely open along strike and down dip.”

“The result supports Musgrave’s view that Lake Austin North has the potential to be a large, well-mineralised gold system and potentially a new gold discovery for the company.”

“The aircore regolith gold halo at Lake Austin North is extensive and we are looking forward to drilling more holes and receiving further assays.”

The Lake Austin results followed the intersection of shallow gold mineralisation at the Numbers prospect.

Infill drilling at the Numbers prospect intersected further high-grade gold within sedimentary iron formation below thin hardpan cover.

This infill drilling has helped to enhance the geological confidence in the current JORC 2004 Inferred Resource of 278,000 tonnes at 2.5g/t gold for 22,000 ounces and will aid the focus of additional follow-up drilling at depth and along strike.

Best results included:

18MORC024
11m at 2.45g/t gold from 28m downhole, including 6m at 4.05g/t gold from 29m;

18MORC025
12m at 2.09g/t gold from 54m downhole, including 1m at 7.65g/t gold from 54m and 5m at 3.03g/t gold from 61m; and

Preceding the Numbers results, the first drill hole drilled into the Joshua gold target, approximately 4.7km south of Break of Day, intersected:

6 metres at 3.9g/t gold from 54m downhole.

New gold mineralisation has been identified at multiple targets and the company believes the program highlights the potential of the Cue project to host further gold deposits within what it considers to be a very prospective and well-endowed region.

On the corporate front, Musgrave welcomed Westgold Resources (ASX: WGX) to its share register with the latter subscribing for 48 million Musgrave shares.

The Westgold investment provided not only a healthy financial boost, it also provided validation for the Cue project and the work Musgrave has completed to date and is intending to complete in the future.

At a price of seven cents per share, Westgold’s investment came in at $3.36 million and was at the time at a 15.4 per cent premium to Musgrave’s 15-day VWAP.

The investment handed Westgold a 14.7 per cent stake in Musgrave Minerals.

Subsequently, the two entities executed a non-binding Term Sheet providing a near-term development pathway for existing Cue project gold resources.

The Term Sheet outlines the scope of a Mine Management and Profit Sharing arrangement, under which Musgrave will receive 50 per cent of profits from operations to be financed, managed and operated by Westgold.

The arrangement is restricted to existing JORC-compliant gold resources, and a 100m buffer at the Lena, Break of Day, Jasper Queen, Gilt Edge and Rapier South deposits on Musgrave’s 100 per cent-owned Cue tenements.

Musgrave retains 100 per cent exploration interests including Lake Austin North and any upside to emerge from outside of the defined resources.

The proposed arrangement provides Musgrave with an option to potentially fast-track development at the Cue project by reducing development and capital risk exposure.

Musgrave will be working alongside Westgold’s experienced technical team, benefitting from its experience in planning, permitting and optimisation in both toll-treatment and mine development of gold deposits in WA.

The potential arrangement would enable Musgrave to focus on its areas of expertise, those being exploration and discovery while affording it the opportunity to generate near-term cash.

The potential also exists for funding to progress future exploration and drilling programs to make further discoveries and continue to grow the resource base.

Musgrave believes significant potential exists to extend existing mineralisation and discover new mineralisation within the project area.

Results to date say it may very well be right.

 

Musgrave Minerals Ltd (ASX: MGV)
…The Short Story

HEAD OFFICE
Ground Floor
5 Ord Street
West Perth WA 6005

Ph: +61 8 9324 1061

Email: info@musgraveminerals.com.au
Website: www.mugraveminerals.com.au

DIRECTORS
Graham Ascough, Rob Waugh, Kelly Ross, John Percival

 

 

Positive Gold Drilling and Ore Sorting Results at Sandstone

Middle Island Resources (ASX: MDI) recently completed a Stage 1 infill diamond drilling program at the company’s wholly-owned Sandstone gold project in Western Australia.

Middle Island Resources had targeted the program of infill diamond drilling in the upper half of the tonalite deeps deposit at Two Mile Hill.

The Two Mile Hill tonalite deeps deposit comprises a comprehensively gold-mineralised tonalite (granite) plug or stock, which at surface measures around 250 metres in length, 80m to 90m in width and extends to at least 700m depth.

Two Mile Hill is located four kilometres north of Middle Island’s 600,000 tonnes per annum Sandstone gold processing plant via an existing haul road.

Although there has been insufficient exploration carried out to estimate a Mineral Resource to date at the Two Mile Hill tonalite deeps deposit, Middle Island has determined an Exploration Target of 24 million tonnes to 34 million tonnes at 1.1 grams per tonne gold to 1.4g/t gold for 0.9 million to 1.5 million ounces of gold situated between 140m and 700m vertical depth, below which it remains open.

The recent program consisted seven drill holes (MSDD262-MSDD268) comprising 988m of RC pre-collar and 1,121.2m of NQ2 diamond tails, for a total of 2,109.2m.

The aim of the drilling was to infill existing diamond drilling within the upper half of the tonalite deeps deposit, extending from 140m depth (base of the open pit Mineral Resource) to approximately 420m depth.

The Stage 1 program was carried out with the following objectives in mind:

To provide enough drill density to permit the upper half of the Exploration Target to be re-classified to at least a JORC 2012 Inferred Resource;

To provide clarity on quartz vein densities and gold distribution within the tonalite to facilitate an improved structural understanding and optimise future drill targeting; and

To optimise the number of intersections of banded iron formation (BIF), marginal to the tonalite, to identify new positions of high-grade, replacement-style mineralisation within the stacked BIF units.

The tonalite results are generally consistent with previous diamond drilling with results returning:

165 metres at 1.11g/t gold from 85m, including 7m at 4.73g/t gold from 123m, 5m at 6g/t gold from 142m and 10m at 3.34g/t gold from 202m depth; and

150m at 1.03g/t gold from 84m, including 34m at 1.85g/t gold from 96m depth.

The drilling also encountered a new zone of high-grade mineralisation within the banded iron formation (BIF), returning:

5m at 21.9g/t gold from 339m, including 2m at 54g/t gold from 340m depth.

Middle Island explained that the drilling indicated the BIF-hosted gold mineralisation peripheral to the tonalite was behaving in a similar vein to elsewhere at Two Mile Hill, by returning higher grades associated with massive to semi-massive pyrite replacement of magnetite.

One hole, MSDD262, demonstrated the host comprises moderately brecciated BIF with the company noting this to be the first occasion that gold mineralisation has been identified within brecciated elements of the stacked BIF units.

Although the MSDD262 intercept represents a new mineralised BIF position, Middle Island said results across the entire program indicated additional multiple similar, high-grade intercepts were encountered peripheral to the tonalite at Two Mile Hill.

The drilling also returned intercepts from footwall and hanging-wall basalts consistent with previous drilling.

Shallow gold intercepts within basalts along the north-eastern tonalite contact returned:

93m at 2.57g/t gold from surface, including 35m at 6.27g/t gold from 58m depth; and

9m at 5.23g/t gold from 85m.

Middle Island believes that, based on these and other shallower results within the basalt, the resource model for the upper half of the Two Mile Hill tonalite deeps Exploration Target may well justify re-estimation.

“As anticipated from infill diamond drilling, the tonalite intercepts returned from the Two Mile Hill deeps gold deposit serve to confirm the earlier results,” Middle Island Resources managing director Rick Yeates said.

“It is also extremely pleasing to identify a further significant new zone of pyrite replacement-style gold mineralisation within the BIF adjacent to the tonalite contact, particularly as it is somewhat divorced from the main tonalite body.

“It is also the first significant intersection identified within brecciated elements of the BIF package and one, of only a few, recorded in the more sparsely drilled Middle BIF unit.

“Utilising these results, resource modelling of the Exploration Target will provide a formal JORC 2012 Mineral Resource for the upper half of the Two Mile Hill tonalite deeps Exploration Target, provide better resolution on the distribution of gold mineralisation within the tonalite which, together with the recently completed ore sorting campaign and geotechnical findings, will facilitate a more robust assessment of the underground mining potential.”

Earlier this year, Middle Island achieved further positive results from Stage II ore sorting trials conducted on drill core from the Two Mile Hill tonalite deeps deposit.

Middle Island’s Stage 1 ore sorting trials were commissioned after the company realised more than 96 per cent of the gold at Two Mile Hill is hosted by quartz veins within the tonalite.

The initial ore sorting campaign in 2017 was based on composite samples of quarter NQ diamond core.

The trials indicated that sorting could deliver a 185 per cent to 257 per cent increase in feed grade, with gold recoveries more than 93 per cent.

The earlier trials focussed on underground mining via more selective, open stoping, therefore utilising composites comprising broader intervals of diamond core with a higher head grade.

The Phase II trials focussed on sub-level caving, therefore utilising all primary core, representative of the entire deposit, to generate composites.

A series of four primary (fresh) composites, and a single transitional (partially oxidised) composite comprising intervals of half HQ and half PQ diamond core derived from MSDD261, were selected for crushing prior to ore sorting.

The results from the Stage II ore sorting campaign on the Two Mile Hill tonalite deeps deposit demonstrated that the ore can be upgraded substantially via a combination of Colour and X-ray sensors.

The results gave Middle Island further confidence that its use of the technology could enable it to deliver a great deal of upside for the project.

The results confirmed upgrades of between 155 per cent and 213 per cent, with sorting gold recoveries in the range of 67 to 93 per cent.

Ore sorting product yields fell within the range of 39 to 51 per cent, indicating that the sorting process rejects more than half the sorter feed material as waste.

Middle Island intimated a further campaign of bulk ore sorting would be undertaken to focus on enhancing results through the application of a Laser sensor, in conjunction with X-ray and/or Colour.

“Ore sorting trials continue to demonstrate a significant enhancement in gold grade, along with a commensurate reduction in feed mass that improves the potential viability of underground mining at the Two Mile Hill tonalite deeps deposit,” Yeates said.

“Considerable news flow associated with the Two Mile Hill deposit can be anticipated in the current quarter, including diamond drilling results, a Mineral Resource upgrade and an updated underground mining concept study.

“We look forward to keeping shareholders updated on progress with the substantial Two Mile Hill tonalite deeps deposit at the Sandstone gold project during the remainder of 2018.”

 

Middle Island Resources Limited (ASX: MDI)
…The Short Story

HEAD OFFICE
Suite 1
2 Richardson Street
West Perth WA 6005

Ph: +61 8 9322 1430

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

DIRECTORS
Peter Thomas, Rick Yeates, Beau Nicholls

 

Cassini Resources Supports Exploration Aspirations

THE INSIDE STORY: Cassini Resources (ASX: CZI) strengthened its ‘explorer in its own right’ credentials with drilling results from the company’s wholly-owned West Arunta zinc project in northern Western Australia.

The drilling is separate to Cassini’s West Musgrave Project (WMP), the largest undeveloped nickel – copper project in Australia, that is being developed under a three-stage $36 million Farm-in/Joint Venture Agreement with OZ Minerals (ASX: OZL).

The WMP Joint Venture provides a clear pathway to a decision to mine and potential cash flow for Cassini.

Cassini Resources completed an Airborne Electromagnetic (AEM) survey, complementing gravity, magnetics and soil geochemistry datasets at West Arunta that provided a new geological interpretation to assist its targeting for the drill program.

The AEM survey enabled Cassini to map stratigraphic horizons within the sedimentary basin focussing on the ‘Dione Horizon’, which it interpreted to be a discrete stratigraphic unit of sulphide or graphiterich, and perhaps locally mineralised, that sits within the broader Bitter Springs Formation.

The company considers such horizons to be favourable targets for base metal mineralisation.

The new AEM data has verified existing conceptual targets of Mimas and Janus to be supported by several anomalous features drawn from independent datasets making them the highest priority targets for the current drill program.

The Mimas prospect is a discrete AEM anomaly and the most conductive along the Dione Horizon.

It has delivered the strongest magnetic response in the basin coincident with the AEM anomaly, possibly representing iron sulphide mineralisation, magnetite alteration or perhaps gossan formation over a sulphide orebody.

The data also highlighted the favourable position in the axis of the Dione Horizon of the Janus prospect.

Janus appeared as the peak of a residual gravity anomaly that is thought to be structurally controlled, potentially representing a dense sulphide body.

As a discrete, isolated AEM anomaly, coincident with a small geochemical anomaly, Cassini has identified Janus to be is a structurally favourable position of the type often associated with sedimentary mineralisation.

“Our West Musgrave Joint Venture has had several recent successes with new discoveries at Nebo, Babel and Yappsu,” Cassini Resources managing director Richard Bevan said.

“The Pre-Feasibility Study is well on track and we look to provide further updates on this shortly.

“Now we’ve commenced a drill program to look for a new zinc province in one of the last mineral frontiers in Australia.

“Our strategy is to provide our shareholders exposure to both short-term exploration success and the medium-term development of a nickel-copper-cobalt sulphide project, timed perfectly to capture rising battery metal demand.”

Leading up to the commencement of the latest round of drilling at the West Arunta project, Cassini had enjoyed a run of positive news emanating from a fleet of drill rigs turning at the WMP in Western Australia.

The work being carried out at the WMP is funded under the Earn-in/JV Agreement Cassini has with OZ Minerals.

The JV claimed a new discovery while conducting a program of resource extension drilling at the Nebo deposit within the WMP that was part of an ongoing Pre-feasibility Study (PFS) on the Nebo-Babel deposits as well as a regional exploration program.

The new high-grade lode position – known as the Angie Lode – was discovered by the PFS resource infill drilling, for which several holes had been designed to target potential high-grade extensions of mineralisation on the peripheries of the current Nebo resource.

Cassini has previously reported success in this program at the H-T Lode at Babel.

The more recent program also targeted positions on the eastern margins of the Nebo deposit with success enjoyed from the first round of drilling.

The most successful of these was been drill hole CZD0084, intersecting:

50.35 metres at 0.62 per cent nickel, 0.54 per cent copper, 0.02 per cent cobalt and 0.15g/t PGE from 170.85m, including a high-grade core of 5.6m at 2.68 per cent nickel, 2.09 per cent copper, 0.09 per cent cobalt and 0.33g/t PGE from 186.95m.

Elsewhere, recent drilling targeting the Yappsu prospect at the WMP encountered a substantial intersection of nickel and copper mineralisation.

Assays for diamond drill hole CZD0079 confirmed a broad zone of nickel and copper sulphide mineralisation.

The hole hit a narrow, disseminated zone of mineralisation returning 5.75 metres at 0.28 per cent nickel, 0.63 per cent copper, 0.01 per cent cobalt, 0.3g/t PGE and 0.15g/t gold from 545m.

An underlying broad disseminated zone of disseminated mineralisation was encountered of: 70.25m at 0.48 per cent nickel, 0.44 per cent copper, 0.02 per cent cobalt, 0.34g/t PGE and 0.08g/t gold from 555.05m.

This included a massive sulphide zone of 0.8m at 4.39 per cent nickel, 0.11 per cent copper, 0.13 per cent cobalt, 1.45g/t PGE and 0.02g/t gold from 555.75m.

Including the barren interval between the two main zones, the diluted intercept came in at 80.3m at 0.44 per cent nickel, 0.44 per cent copper, 0.02 per cent cobalt, 0.32g/t PGE and 0.09g/t gold, which is the thickest intercept of mineralisation the JV has drilled so far.

The JV has intersected thickness, grades and continuity of massive sulphide mineralisation in almost every hole at Yappsu drilled to date, which has been interpreted to indicate the overall potential for the system to host additional large accumulations of massive nickel sulphides.

The excitement surrounding the intercept in CZD0079 is understandable, as it complements earlier results.

Together the results confirmed Cassini’s belief that historical drilling failed to intersect the core of the mineralised system.

The Yappsu mineralisation has now been shown to continue over 250 metres down plunge and remains completely open at depth and untested by current Downhole Electromagnetic (DHEM) or surface Moving Loop Electromagnetic (MLEM) systems.

The analysis of these two holes has resulted in the development of a new interpretation of the host intrusion with geological modelling suggesting the Yappsu intrusion to be a slab-like body, striking east-west and plunging to the west.

The JV has interpreted the massive sulphide mineralisation intersected to date to be hosted within a bulge or flexure of the host intrusion, with the flexure and massive sulphide mineralisation striking in a north-westerly direction.

Cassini has reasoned the currently defined mineralisation probably only represents a small fraction of the entire magmatic system as both the up-plunge and down-plunge interpreted positions have not been tested by any previous drilling.

Cassini considers the JV’s revised interpretation presents two immediate targets for follow-up drilling, being:

The up-plunge position could represent a ‘pinch’ position, that could host an economic body of disseminated mineralisation, amenable to open-pit mining given the relatively shallow depth; and

The down-plunge position is where substantial massive sulphides could have accumulated and is the main priority for exploration.

Both targets represent opportunities for the WMP and have been declared priorities ahead of close-spaced drilling around the known mineralisation of CZD0076B and CZD0079.

Further drilling is underway at Yappsu to identify up-plunge and down-plunge extensions of the host intrusion where a minimum of three holes will be drilled with results expected in early Q4.

Two up-plunge holes will test for near surface mineralisation and to assist interpretation of the geological model while testing for near-surface mineralisation.

A single down-plunge hole will test the more likely mineralised position to provide a platform for DHEM surveying.

 

Cassini Resources Limited (ASX: CZI)
…The Short Story

HEAD OFFICE
10 Richardson Street
West Perth WA 6005

Phone: +61 8 6164 8900

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

DIRECTORS
Mike Young, Richard Bevan, Dr Jon Hronsky, Phil Warren, Greg Miles