Rox Resources Working up Nickel and Gold Resources

INSIDE UPDATE: Rox Resources (ASX: RXL) is putting its well-funded war chest to work across its portfolio of Western Australia nickel projects.

Rox Resources is currently sitting on a healthy bank balance of approximately $12 million due to finalising sale of the Reward zinc project in the Northern Territory in 2017.

Rox recently dipped into these funds commencing a 2,500 metres diamond drilling program at the company’s Fisher East nickel project, located 500 kilometres north of Kalgoorlie in Western Australia.

Five holes are to be drilled into three highly-prospective targets at the project’s Musket and Camelwood deposits and the Corktree prospect.

The overall aim of the diamond program is to extend the Musket and Camelwood deposits by testing strong downhole EM anomalies, and to test a very strong one-kilometre long EM conductor at Corktree detected from surface, but not previously effectively drill tested.

“The downhole EM target at Musket is the strongest anomaly we’ve encountered on the project,” Rox Resources managing director Ian Mulholland said.

“Extensional drilling at Camelwood will indicate the strength of the nickel sulphide system below the current level of our defined resource.

“The target at Corktree is also very attractive, as it represents a very strong, 400 to 500 metres deep, over one-kilometre long, EM conductor detected from surface.

“At Fisher East our overall aim is to make a new game changing massive nickel sulphide discovery, while at the same time increasing resources and continuing to assess development options.”

Mulholland boasted that Rox is only one of a very few junior companies not currently in production that has defined JORC nickel sulphide resources in Western Australia.

“This puts us in a unique, and advantageous position when it comes to development opportunities in this commodity as the price continues to appreciate”, he said.

JORC Code-2012 Mineral Resources at Fisher East total 2 million tonnes at 2.5 per cent nickel for 50,000 tonnes contained nickel.

In addition, mineral resources at Collurabbie total 573,000 tonnes at 2.3 per cent nickel equivalent for 13,500 tonnes contained nickel equivalent.

Earlier this year, Rox sold its Bonya tenement interests to Thor Mining (ASX: THR) for a total of $550,000 to be received in Thor shares.

Rox, as operator of an earn-in and Joint Venture agreement with Arafura Resources, discovered copper at the Bonya Mine prospect.

The tenements are also prospective for tungsten and molybdenum.

Rox and Arafura recently restructured the JV resulting in a 40 per cent ownership for Rox of all minerals on EL29701.

In addition, EL29599, wholly-owned by Rox was included in the sale.

“Rox will retain a significant exposure to any future developments at Bonya and Molyhil through its shareholding in Thor and will allow the company to place a clear focus on its other projects in Western Australia,” Mulholland said.

 

Rox Resources Limited (ASX: RXL)
…The Short Story

HEAD OFFICE
Level 1, 34 Colin Street
West Perth WA 6005

Ph: +61 8 9226 0044

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

DIRECTORS
Stephen Dennis, Ian Mulholland, Brett Dickson

 

 

Pioneer Resources Forging Australian Caesium Path

INSIDE UPDATE: Pioneer Resources (ASX: PIO) is moving closer to starting Australia’s first caesium mine at the company’s 100 per cent-held Pioneer Dome project in the Eastern Goldfields of Western Australia.

Pioneer Resources Pioneer Dome lithium-caesium-tantalum (LCT) project includes the Sinclair Zone caesium deposit, which currently hosts a Mineral Resource Estimate of 10,500 tonnes of the caesium ore, pollucite, with a grade of 17.1 per cent caesium oxide (Cs2O).

Pollucite is a rare mineral of caesium that forms only in extremely differentiated zones of rare-metal lithium-caesium-tantalum pegmatite systems.

It is found in commercial quantities at the Bikita Mine in Zimbabwe and the Tanco Mine in Canada, where it is mined principally for use in the manufacture of Caesium Formate, a high-density fluid used in high-temperature/high-pressure oil and gas drilling.

Caesium Formate provides several well documented benefits including, minimal damage to the hydrocarbon-bearing formation resulting in higher production rates, where it acts as a lubricant, is non-corrosive and is considered an environmentally-friendly benign chemical when compared to alternatives. Caesium in principal commercial usage is the non-radioactive isotope.

Pioneer recently completed a program of diamond-drilling at Pioneer Dome to infill five sections with the strongest caesium mineralisation – in the form of the mineral pollucite – in preparation for final open pit mine design work.

Each of the key sections returned pollucite intersections in line with earlier modelling

Caesium (pollucite) intersections included:

PDD162
11.15 metres at 17.43 per cent Cs2O from 38.2m;

PDD166
5.70m at 29.61 per cent Cs2O from 37.7m;

PDD167
2.68m at 27.11 per cent Cs2O from 40.82m and 7.18m at 16.04 per cent Cs2O from 47.88m;

PDD170
7.45m at 16.58 per cent Cs2O from 43.6m; and

PDD174
4.30m at 20.89 per cent Cs2O from 43.5m.

The program of pre-mine drilling at the Sinclair Zone caesium deposit consisted a total of 20 drill holes, producing 1,333.29m of core.

Of the 20 holes drilled, 15 holes targeted caesium or lithium mineralisation.

Four holes were completed adjacent to the proposed pit walls to provide geotechnical information, and one hole became blocked and was abandoned.

Most holes also intersected potassium (microcline).

Armed with the lithium and caesium results, Pioneer’s geological consultants from the Mitchell River Group are revising the Mineral Resource Estimate for caesium.

Potassium (microcline) samples, which require specialised processing, are currently being analysed.

The open pit design and confirmation economic study are on track to be concluded by the end of May 2018.

In addition to the targeted caesium (pollucite) mineralisation, Pioneer has encountered broad zones of a range of other alkali-metal minerals, including lithium (petalite and lepidolite) and potassium (microcline) within the Sinclair Pegmatite.

On the basis that the Board determines to proceed with mining, as the microcline, petalite and lepidolite will be ‘mined through’ to access the pollucite, the company will stockpile these minerals, and is advancing commercial opportunity discussions for each with third parties.

“The Sinclair deposit is proving to be an exciting opportunity for the company as it moves towards its first mining operation,” Pioneer Resources managing director David Crook said.

“This round of drilling confirmed the continuity of the pollucite mineralisation, significantly de-risking the project from an ore supply perspective.”

Pioneer recently completed a drilling program with its Joint Venture partner, TSXV-listed International Lithium Corp. at the Mavis Lake lithium project in the province of Ontario, Canada.

The program returned a standout intersection of:

MF18-53
55.25m at 1.04 per cent lithium oxide from 82.75m.

All nine holes intersected spodumene mineralisation, usually in the form of multiple wide zones of pegmatite.

“The Joint Venture considers the 2018 drilling program to be definitive for the project, as all nine holes intersected significant lithium mineralisation, including the most heavily mineralised hole drilled to date,” Crook said.

 

 

Pioneer Resources Ltd. (ASX: PIO)
… The Short Story

HEAD OFFICE
21 Ord Street
West Perth WA 6005

Ph: (08) 9322 6974

Email: pioneer@pioresources.com.au
Web: www.pioneerresources.com.au

DIRECTORS
Craig McGown, David Crook, Wayne Spilsbury, Allan Trench

 

Musgrave Minerals Testing New Drill Targets at Cue

INSIDE UPDATE: Musgrave Minerals (ASX: MGV) is conduction a drilling program designed to test ten new high priority gold targets at the company’s flagship Cue project in the Murchison district of Western Australia.

Musgrave Minerals’ Cue project contains the 3.55 million tonnes at 3.09 grams per tonne gold for 352,000 ounces of gold Moyagee gold Resource.

The main contributors to the Moyagee deposit are the Lena and Break of Day deposits, the latter of which being where Musgrave is currently focused.

Break of Day’s current contribution to the Moyagee Resources is an Indicated and Inferred Mineral Resource of 868,000 tonnes at 7.15g/t gold for 199,000 ounces of gold, which Musgrave expects to increase with further drilling.

All four holes of an extensional drilling program at Break of Day, returning intersections of:

18MODD004
16.3 metres at 1.2 grams per tonne gold from 258.7m down hole, including 0.7m at 9.9g/t gold from 258.7m; and

18MODD002
1.8m at 4.5g/t gold from 333m down hole.

In addition, the Velvet Lode was intersected by drill hole 18MODD002 returning:
2.1m at 2.6g/t gold from 362.8m down hole.

The current drilling is underway on the ten new targets that are open and untested by basement drilling.

These were identified on completion of a regional gravity survey undertaken on the company’s Cue tenements earlier this year.

Musgrave integrated the data gleaned from the gravity survey with existing aeromagnetic, geochemical and historical drilling information to define the targets along a prospective 20 kilometres long corridor.

“The integration of the new gravity data significantly improved our interpretation of the geology at Cue and provided great assistance in defining and prioritising new targets for drill testing,” Musgrave Minerals managing director Rob Waugh said.

“A number of the targets have an analogous setting to the two million-ounce Great Fingall deposit, 30 kilometres to the north.

“These are excellent targets and an opportunity for the company to make a game-changing discovery.”

Seven of the ten targets have historical broad-spaced aircore or rotary air blast (RAB) drill holes, all of which returned anomalous gold in assay results.

These historical drill holes terminated in weathered basement and did not penetrate the unweathered Archaean basement.

Predictably, a few of the targets do stand out more than the others as potentially prospective deposits, such as the Lake Austin North gold target.

Lake Austin North is a one-kilometre long regolith gold anomaly Musgrave has interpreted to be on a parallel shear to the Break of Day/Lena shear zone under lake sediments.

Historical aircore drilling from 2002 returned an intersection of 4 metres at 8.1g/t gold (MOAC153) at 87m vertical depth that remains open to the north and has not been followed up.

The target is only three kilometres north of Break of Day.

The West Island target is a 500m long gold target eight kilometres north of Break of Day that has been interpreted to also be on a parallel shear to the Break of Day/Lena shear zone under lake sediments.

Historical aircore drilling from 2006 intersected 4m at 2.7g/t gold at 107m down hole but no follow-up basement drilling has been conducted.

The 500m long Lake Austin gold target, only one kilometre north of Break of Day, has been interpreted to be sitting on the continuation of the Break of Day/Lena shear zone under shallow lake sediments.

Historical aircore drilling carried out in 1996 intersected 7m at 1g/t gold at 24m down hole but following the form of its predecessors, again no follow-up basement drilling has been conducted.

The gravity data also defined a parallel shear zone approximately 600 metres west of the Break of Day/Lena shear which has not been drill tested.

Musgrave has also planned further follow-up RC drilling that is to be undertaken at the Numbers prospect where an existing, near surface JORC 2004 Inferred Resource gold resource of 278,000 tonnes at 2.5g/t gold (22,000 ounces of gold) has been defined over a 260m strike extent.

“This drilling will test some exciting new large-scale targets in areas with very little previous exploration,” Waugh said.

“It’s a very prospective greenstone belt in a well-endowed region with good infrastructure and numerous operating gold plants.

“The focus of this drilling is to discover another high-grade gold deposit.”

 

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

 

Middle Island Continues Ore Sorting at Two Mile Hill

INSIDE UPDATE: Middle Island Resources (ASX: MDI) is selling the company’s West African interests to concentrate on its 100 per cent-owned Sandstone gold project in Western Australia.

Middle Island Resources began a further campaign of ore sorting to verify positive results from initial testwork on the Two Mile Hill tonalite deeps deposit at the Sandstone gold project.

Previous scoping level testwork demonstrated sorting can deliver a 185 per cent to 257 per cent increase in grade, with gold recoveries in excess of 93 per cent and 64 per cent of the sorter feed material being rejected.

The new ore sorting campaign is to be more definitive and will include work based on crush size and grade range, designed to improve the original results.

Ore sorting validation is anticipated to have a positive impact on project economics, delivering reduced haulage and process operating costs, and lower tailings disposal requirements.

The Two Mile Hill tonalite deeps deposit comprises an Exploration Target of 24 million tonnes to 34 million tonnes at 1.1 gram per tonne to 1.4g/t gold for 0.9 million to 1.5 million ounces of gold.

Should it achieve a successful outcome on the Stage II ore sorting trials for the primary (underground) component of the Two Mile Hill deposit, Middle Island intends to immediately progress a staged drillout of the upper half of the Exploration Target via RC pre-collared diamond drilling.

The program is designed to infill the existing drill pattern, upgrading the upper portion of the underground Exploration Target into a Mineral Resource.

“Ore sorting offers the potential to make a significant positive impact on the economics of the Two Mile Hill tonalite deeps deposit,” Middle Island Resources managing director Rick Yeates said.

“Should the new, more definitive, ore sorting campaign replicate or improve on the initial trial results, bulk underground mining at Two Mile Hill becomes a very real opportunity that would substantially extend and enhance the envisaged project production schedule.

“While the focus of the current ore sorting campaign is very much on the deeper underground potential of the Two Mile Hill deposit…we will utilise the opportunity to also assess the response of the open pit mineralisation to ore sorting.”

Earlier this year, Middle Island announced a Heads of Agreement (HoA) had been signed with TSXV-listed Tajiri Resources relating to the divestment of the company’s 100 per cent interest in the Reo gold project in Burkina Faso, West Africa via an Option to Purchase Agreement.

Under the terms of the deal, Tajiri will pay Middle Island US$35,000 on execution of the HoA in return for a three-month exclusivity period, during which the buyer is conducting its due diligence.

Once due diligence is completed and the formal Option to Purchase Agreement signed, Tajiri will pay a further US$150,000 and issue Middle Island with 2.5 million Tajiri shares.

On its part, Middle Island will grant Tajiri an exclusive option to purchase the company’s entire interest in the Reo project.

During the subsequent 18-month Option term Tajiri will be required to pay all expenses associated with maintaining the Reo project permits in accordance with Burkinabe law.

Should Tajiri elect to exercise the Option, it will pay a further US$150,000 and issue Middle Island with a further 2.5 million Tajiri shares.

Middle Island will retain a two per cent net smelter return royalty on any minerals derived from the Reo project, although Tajiri will have the right to acquire that royalty from Middle Island for US$5 million.

If Tajiri doesn’t exercise the Option, Middle Island will retain all consideration already paid and continue to own the project.

“The transaction structure allows Middle Island shareholders to retain a significant indirect interest in the upside potential of the Reo project via the Tajiri equity and royalty components,” Yeates said on announcing the deal.

“The full equity component, which will represent some eight per cent of Tajiri’s issued capital on a fully diluted, post issue basis, also offers shareholders considerable exposure to Tajiri’s highly prospective gold project interests in Guyana, South America.

“On completion, the Reo project transaction will represent the divestment of Middle Island’s remaining gold interests in West Africa, allowing the company to fully focus on our Sandstone gold project development in Western Australia.”

 

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

 

Impact Minerals’ Drilling Continues to Grow Silica Hill Mineralisation

INSIDE UPDATE: Impact Minerals (ASX: IPT) has been on a drilling frenzy at the company’s emerging gold-silver discovery at the Silica Hill prospect, 100 kilometres north of Orange in New South Wales.

Impact Minerals has received high-grade gold and exceptionally high-grade silver assays form the southern mineralised zone at the Silica Hill prospect.

The assays were returned from three diamond drill holes, indicating that the grades of gold and silver, especially the gold, are increasing with depth below surface.

“These results are an exciting further breakthrough for us at Silica Hill as they indicate the mineralised system is getting better at depth and to the east,” Impact Minerals managing director Dr Mike Jones said.

“The silver grades and minerals within the vein system we have discovered are exceptional and confirm the unique nature of this deposit in Australia.

“These are the highest assays returned so far at the project and they occur within robust zones of mineable width and grade. We are excited for the 2018 exploration programme.”

Assays from CMIPT077 returned an intercept of:
22.5 metres at 1.7 grams per tonne gold and 276g/t silver from 166.7m down hole, including 0.3m at 1.8g/t gold and 4200g/t (135 ounces or 0.42%) silver from 174.4m.

The intercept also included:
0.8m at 13.6g/t gold and 40g/t silver from 187.7m.

These results confirmed the southern mineralised zone to be a steeply dipping mineralised vein system trending east-west and open down dip and down plunge to the south east.

Continuity of gold and very high-grade silver mineralisation from surface was confirmed by the assays from the other two diamond drill holes drilled up dip of CMIPT077.

CMIPT074
21.8m at 0.6 g/t gold and 273g/t silver from 137.9m down hole, including 0.5m at 0.5g/t gold and 1,485g/t (48 ounces) silver from 143m and 0.4m at 1.6g/t gold and 6240g/t (200 ounces or 0.62%) silver from 148.5m.

CMIPT073
75.3m at 0.4g/t gold and 62g/t silver from 75m down hole, including 10.8m at 1.4g/t gold and 243g/t silver from 134m, which included 4.3m at 2g/t gold and 566g/t silver from 134m, including 0.3m at 6.9g/t gold and 1,485g/t silver from 136m.

Subsequent drilling provided new assays and allowed for detailed studies on core from the Silica Hill prospect, which further demonstrated the large scale and high-grade nature of the mineralised system in the area.

Hole CMIPT72 is the eastern most hole Impact has drilled at Silica Hill.

The hole intersected two zones of strong silica-sulphide alteration with anomalous gold and silver values over a combined thickness of more than 200 metres down hole including a high-grade gold and silver vein within the upper zone indicating potential for more veins nearby, mostly to the south.

The upper zone in Hole CMIPT72 returned:

46m at 0.04g/t gold and 5g/t silver from 200m down hole, including 0.4m at 2.5g/t gold and 327g/t silver from 257.2m (known as the narrow vein).

The lower zone returned 67m at 0.3g/t gold and 1g/t silver from 402m down hole.

Detailed studies carried out on the drill core demonstrated that the two east-west trending mineralised structures at Silica Hill become more north west-south east orientated to the east and that the Silica Hill rhyolite is more extensive at depth to the south than previously recognised.

“Following the discovery of high-grade gold and very high-grade silver veins at Silica Hill, these new results are a further breakthrough for Impact as it demonstrates the system extends over an area of at least 500 metres by 500 metres in dimension and to considerable depth,” Jones said.

“We are also recognising different units within the Silica Hill rhyolite that are an important control on the mineralisation and may also be the upper parts of a deep-rooted intrusion that could be mineralised over a significant vertical extent.”

Impact Minerals considers the results from drilling at Silica Hill continue to demonstrate the potential for bulk mining and to substantially increase the resources at the Commonwealth project, which currently stand at 720,000 tonnes at 2.8g/t gold, 48g/t silver, 1.5 per cent zinc and 0.6 per cent lead.

Large areas of this system still remain untested by drilling, however, the company believes this demonstrates there to be plenty of exploration upside in the area.

 

 

Impact Minerals Limited (ASX: IPT)
…The short story

HEAD OFFICE
26 Richardson Street
West Perth WA 6005

Ph: +61 (8) 6454 6666

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

DIRECTORS
Peter Unsworth, Dr Mike Jones, Paul Ingram, Markus Elsasser, Eamon Hannon

Gold Road Greenfield Drilling Focused on Discovery

INSIDE UPDATE: Leading into 2018, Gold Road Resources (ASX: GOR) concentrated on identifying targets for a prioritised greenfields exploration program.

As result, Gold Road will spend approximately $23 million drilling to test the highest‐ranked prospects across its 100 per cent owned Yamarna tenements and the Gruyere Project Joint Venture (Gruyere JV) with Gold Fields Limited.

Gold Road’s ‘Exploration Pipeline Model’ ranks the quality of identified targets within progressive milestone stages ‐ Milestone 1 being the earliest stage and Milestone 5 being the most advanced.

Recent drilling focused primarily on Milestone 3 targets including:

Diamond and RC drilling on the Wanderrie Supergroup Trend; and

Diamond and RC drilling at the Smokebush Camp.

Gold Road anticipates undertaking further diamond and RC testing of one of the highest‐ranked Milestone 3 targets, Ibanez, within the Corkwood Camp.

Two aircore rigs began drilling at Yamarna towards the end of March testing earlier stage (Milestone 1 and 2) targets.

Projects earmarked for aircore drilling in coming months include:

Tamerlane, a Milestone 2 target where drilling has commenced on the Yamarna Shear trend north of the Wanderrie Camp;

Kingston North within the Spearwood Camp that had drilling scheduled for mid‐April to infill and extend a gold geochemical anomaly identified at the end of 2017;

Smokebush Regional is a high-ranked Milestone 1 target, within the Smokebush Camp that has drilling scheduled for May to test the broader region north of the highly ranked Smokebush prospect;

The highest ranked Milestone 1 target is Bloodwood Camp where first pass drilling is scheduled for late May; and

The Milestone 1 Romano Camp target north of Gruyere is to undergo first pass drilling expected to commence mid‐year.

In February, Gold Road signed a Sale Agreement to acquire Sumitomo Metal Mining Oceania Pty Ltd’s 50 per cent interest in the South Yamarna project for $7 million in cash.

The transaction is expected to be concluded in May and will return Gold Road to 100 per cent ownership of the South Yamarna tenement package, which contains some of the highest ranked Camp Scale and bedrock drilling targets identified by Gold Road in the district.

Most of Gold Road’s 2018 exploration budget ($17 million) will be spent on the Yamarna tenements, where four drill rigs have commenced on a campaign designed to maximise the chances of discovering additional multi‐million-ounce gold deposits capable of supporting development of stand‐alone mining operations.

Construction of the Gruyere gold project is progressing, with project engineering and overall construction 84 per cent and 44 per cent complete respectively, and EPC construction 17 per cent complete at the end of March.

A review of the project cost estimate and schedule, the Definitive Estimate, indicated that recent above average rainfall is likely to hold up first gold being poured at the project and increase capital costs.

First gold production at Gruyere is now anticipated early in the June 2019 quarter.

The $6 million Gruyere JV exploration drilling program will focus on resource definition drilling on additional high‐margin satellite deposit to supplement the Gruyere mine schedule.

Gold Road updated the Yamarna Mineral Resource and Ore Reserve statement.

The Ore Reserve for Yamarna increased by 6.3 per cent to 97.35 million tonnes at 1.2 grams per tonne gold for 3.74 million ounces of gold.

This is associated largely with maiden reserve declarations for satellite deposits at Attila and Alaric, combined with a minor increase at Gruyere.

Following a Pre‐feasibility Study into developing Attila and Alaric as open pit mines to provide satellite feed to the Gruyere process plant, a combined Ore Reserve of 3.59 million tonnes at 1.55g/t gold for 179,000 ounces of gold was established for these deposits.

The Ore Reserve at Gruyere increased by 44,000 ounces of gold following modifications to the mine design submitted for the operational plan and now stands at 93.76 million tonnes at 1.18g/t gold for 3.56 million ounces of gold.

Gold Road added a third joint venture agreement in Western Australia’s South‐west Terrane with Cygnus Gold (ASX: CY5), comprising four tenement applications within the Yandina Shear, which is known to host gold mineralisation elsewhere in the South‐west Terrane.

The joint venture terms commence on a 75 per cent Gold Road and 25 per cent Cygnus ownership basis.

 

 

Gold Road Resources (ASX: GOR)
…The Short Story

HEAD OFFICE
Level 2
26 Colin Street
West Perth WA 6005

Ph: +61 8 9200 1600

Email: perth@goldroad.com.au
Website: www.goldroad.com.au

DIRECTORS
Tim Netscher, Ian Murray, Justin Osborne, Sharon Warburton, Brian Levet

Cassini Resources Flexes Exploration Muscle

INSIDE UPDATE: Cassini Resources (ASX: CZI) continues to progress the company’s West Musgrave nickel-copper project in Western Australia.

Cassini Resources, and its West Musgrave project Joint Venture partner, OZ Minerals are six months into a pre-feasibility study on the project that, according to schedule should be finished in around 12 months from now.

The JV partners have completed activities as part of the West Musgrave PFS where OZ Minerals is looking to proceeding to the next stage of its Farm-in and Joint Venture agreement, which enables OZ Minerals to earn 51 per cent of the project through an investment of approximately $19 million over a maximum of 18 months.

The PFS commenced in November 2017 and has proceeded to plan so far with recent activities including the re-opening and expansion of the exploration camp to accommodate the increased level of activity on site during the study.

Two diamond drill rigs are currently working double shift to produce samples for the next phase of metallurgical optimisation, while advanced test work has already begun on samples remaining from the 2017 program.

Test work will focus on potential nickel and copper recovery improvements identified during the Scoping Study.

Meanwhile, resource infill and extension drilling has recently commenced with two additional RC drill rigs now on-site.

Cassini anticipates the first results of the RC drilling are likely to be available from the beginning of June.

Surface moving loop (MLEM) and downhole electromagnetic (DHEM) surveys have also commenced at exploration targets One Tree Hill, Yappsu and Succoth with a third diamond drill rig arriving in early May to assist with exploration drilling.

Gravity and passive seismic surveys have been completed to assist targeting of water exploration drilling later in 2018 as de-risking of a reliable water supply for processing is a key outcome of the PFS.

With the West Musgrave JV with OZ Minerals ticking along nicely, Cassini has signalled its intentions to conduct exploration activities at its 100 per cent-owned exploration projects, including taking opportunities to add to the project portfolio when they become available.

This determination resulted in the company recently securing an option to acquire the Yarawindah Brook nickel-copper-cobalt project near New Norcia, in Western Australia.

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

Historic exploration focussed on a small platinum and palladium (PGEs) resource which Cassini considers a ‘path-finder’ anomaly for massive nickel – copper – cobalt sulphides.

Exploration for nickel and copper has been sporadic, however the most recent drilling in 2007 targeting surface EM anomalies, returned encouraging results, including 7 metres at 1.3 per cent nickel, 0.22 per cent copper, 0.06 per cent cobalt and 432ppb palladium from 74m.

No further follow-up drilling was conducted due to budget limitations of the previous operator during the exploration downturn post-GFC.

Elsewhere across its portfolio, Cassini is carrying out a high-resolution, helicopter-borne, Airborne Electromagnetic (AEM) survey at the company’s 100 per cent-owned West Arunta project in Western Australia.

Cassini completed a round of drilling at West Arunta in 2016 testing several zinc anomalous outcrops that had been identified through surface mapping and sampling.

From this drilling, Cassini considered there could be a chance the West Arunta has potential to host sedimentary zinc mineralisation, even though the zinc anomalous outcrops were interpreted at the time to be the result of hydromorphic dispersion in the regolith from a nearby primary source.

Cassini engaged independent contractor NRG to fly its trademarked Xcite system over the entire prospective horizon, striking over 35 kilometres, for a total of 1000 line-kilometres.

The survey is expected to assist with mapping the regolith profile and the definition of key prospective stratigraphic positions, as well as potentially directly identifying base metal mineralisation.

The long-term outlook for the zinc price is for it to remain strong due to current supply deficits.

Cassini ranks the West Arunta zinc project as a key exploration asset where it has a ‘first-mover’ advantage, due to minimal historic exploration in the region.

Cassini has taken West Arunta from conceptual model to proof-of-concept over the past few years and hopes to identify primary sedimentary zinc mineralisation at the project.

 

 

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

 

Intermin Resources Making Gold While Vanadium Shines

THE INSIDE STORY: Intermin Resources (ASX: IRC) is a gold exploration and mining company focussed in the Kalgoorlie area of Western Australia with a lot more happening on the sidelines.

Intermin Resources is developing a mining pipeline of projects to generate cash and self-fund aggressive exploration, mine developments and further acquisitions.

The company currently has the Teal gold mine in production where it commenced open pit mining in 2016 with ore processed at the Paddington mill of Norton Gold Fields Limited and the Lakewood toll milling facility.

The company commenced mining of an eastern cutback (Teal Stage 2) in September 2017, concurrently with Stage 1 to recover approximately 22,000 ounces at plus-three grams per tonne gold from oxide and transitional ore.

This was completed at the end of March 2018.

Intermin’s aim is to grow the current Teal JORC 2012-compliant Mineral Resource Estimate of 1.49 million tonnes at 2.18g/t gold for approximately 104,000 ounces of gold (above 1g/t gold lower grade cut-off and below a 20g/t gold upper grade cut-off).

“The project needs to be self-funded,” Intermin Resources managing director Jon Price told The Resources Roadhouse.

“The mining we completed at the Teal gold mine was very successful in meeting all its Feasibility Study parameters, resulting us sitting on a bank balance of around $10 million.

“That allows us to go and spend $4 million on a drilling program of 55,000 metres, a program that is huge for a company our size.”

Intermin spent a good deal of time and effort throughout 2017 compiling and reviewing a large geological database comprising geochemical, geophysical and historic drilling datasets to prioritise targets for drill testing.

Field reconnaissance investigations were undertaken during the year to confirm these targets and finalise the design of the 2018 drill program.

The company recently released a maiden JORC 2012 Mineral Resource Estimate for its Anthill project of 1.42 million tonnes at 1.72g/t gold for 78,000 ounces with 75 per cent sitting in the Indicated Category and mineralisation open in all directions.

The Resources took Intermin’s Total Mineral Resource to 6.36 million tonnes at 2.12g/t gold for 434,000 ounces.

“We have a number of mantras that we follow, and one of those is that you have to grow the Resource beyond one million ounces,” Price explained.

“That’s what this year is all about.

“The drilling program is split 50 per cent looking for new discoveries and fifty per cent growing the Resource over the one million ounce mark.

“For us that converts to around 400,0000 ounces in Reserves providing four years producing 100,000 ounces per year, which in turn triggers the ability to commission a mill, either bought or built, and operating as a standalone producer.”

In addition to the Teal and Anthill drilling, Intermin will commence testing Blister Dam, a project that sits on the Zuleika Shear that hasn’t been drilled since the 1990s.

“We have done all the preparation work, we have identified the targets, now it’s the drillbit’s turn to tell us what is there,” Price said.

As it focuses on its self-proclaimed specialty of gold, Intermin has several joint ventures in place across multiple commodities and regions of Australia providing exposure to vanadium, copper, PGE’s, and nickel/cobalt.

“The business model has always been based around gold, because that is our core competency – we stick to our knitting, so to speak,” Price continued.

“Having a main gold focus has resulted in us Joint Venturing the other commodity projects we have to some high-quality specialists in those respective fields.

“Our business model remains pretty simple – to grow into being a mid-tier gold producer, then if we get taken over on the way and all our shareholders make money, so be it, that’s all well and good and we’ll go out and do it all over again.

“The recent industry vanadium interest has raised the profile of our Joint Venture – suddenly everybody wants to know what we have and how we can bring it to commercial production.”

Intermin’s Richmond vanadium/molybdenum project is in Queensland and is a Joint Venture with AXF –Vanadium, a company that lends plenty of technical expertise to the project as well as extensive business relationships throughout one of the world’s strongest vanadium markets in Southeast Asia.

An update to the Mineral Resource for the Richmond project has moved it into the ‘world class’ category standing at 2,579 million tonnes at 0.32 per cent vanadium pentoxide (V2O5) at a 0.29 per cent lower cut-off grade.

“It’s a monster Resource and we have Chinese backing in our Joint Venture partners who can deal with taking it to that commercial level and all the offtakers that come with that, because they know them – they have a complete network already in place,” Price said.

China is the logical step for a company with such a vanadium Resource as the Chinese government considers ways of replacing its current coal-fired energy generation while closing steel mills to ease pollution and consolidate environmental controls.

“There’s an enormous gap and supply crunch now, let alone in the future with the growth in vanadium redox flow batteries self-evident,” Price continued.

“We want a seat at that table, we have one of the largest vanadium Resources in the world and it sits just five metres below the surface.”

According to international research house, Roskill, vanadium demand growth is expected across most applications.

Vanadium consumption for steel manufacture will depend on use and growth in steel demand.

Just one area this will play out is in the manufacture of reinforcing bars (rebar), used primarily in the construction industry.

Higher-strength rebar contains more vanadium and, therefore, the more high-grade rebar used globally, the more vanadium is needed.

“This means that construction regulations, such as those introduced recently in China, which mandate the use of certain rebar for key applications can considerably impact vanadium demand,” Roskill observed.

Roskill also noted the rise in interest in the potential of vanadium redox batteries (VRBs).

“As of 2016, Roskill estimates that demand from VRBs accounted for less than 500 tonnes of vanadium pentoxide consumption,” the research house said.

“VRBs will likely achieve commercial success in specific energy storage applications such as load levelling, which will support an increase in market share and in vanadium demand.”

Intermin prides itself as being a gold company, however, it has developed several Joint Ventures across the commodity spectrum, incorporating commodities that are enjoying current success as the electronic revolution buoys the exploration sector.

“That provides the opportunity for our shareholders to have us focus on our gold project without distraction,” Price said.

“We are good at gold, and we don’t pretend to be good at anything else, so we let experts handle the other commodities.

“Our shareholders benefit by having exposure to all those other commodities, in different areas through the percentages of retained ownership.

“We want to participate in those JVs as they progress to commercial reality and we need to be able to fund that, which is where our gold business comes into play.

“We are a small junior gold business, but we have exposure to all those commodities.

“One or two of them may come to fruition, and the others may not, but when one of them does we want to be there maximising our opportunities.”

 

Intermin Resources Limited (ASX: IRC)
…The Short Story

HEAD OFFICE
163-167 Stirling Hwy
Nedlands WA 6009

Ph: +61 (8) 9386 9534

Email: iadmin@intermin.com.au
Website: www.intermin.com.au

DIRECTORS
Peter Bilbe, Peter Hunt, Jon Price

 

 

Venture Minerals Flags Intent to Rattle Tin Market

THE INSIDE STORY: Venture Minerals (ASX: VMS) has commenced a detailed reassessment of the high-grade tin and tungsten Resource base at the company’s Mount Lindsay project in Tasmania.

Venture Minerals believes that as one of the world’s largest undeveloped tin project, Mt Lindsay 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.

Tin hasn’t exactly been in the top ten sexiest metals list for some time, however a recent presentation by global powerhouse Rio Tinto at a battery metals conference in Perth, Australia, drew as much attention to the metal as when Battery King, Elon Musk provided nickel with a boost.

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, what caught the attention of most people in the room was the metal sitting above the market’s recent hot commodity, separated by a good amount of daylight – tin.

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.

Mount Lindsay contains more than 80,000 tonnes of tin metal in the same mineralised body that also hosts a globally significant Resources of another, some may say, forgotten contributor to the current world technological advancement in tungsten.

The tungsten Resource contains 3.2 million metric tonne units (MTU) of tungsten trioxide (WO3).

The U.S. Geological Survey Mineral commodity summaries 2018 stated that total mine production of tungsten outside China was expected to be slightly higher than that of 2016.

This met with an expected combined decrease in production from Mongolia, Rwanda, Spain, and elsewhere that was less than the combined increase in production expected from the recently started Hemerdon mine in the United Kingdom and from the largest mine outside of China in Vietnam, which has improved its productivity.

“China was the world’s leading tungsten consumer,” the report said.

“During the first six to nine months of 2017, China’s consumption of tungsten concentrates, and its production and exports of downstream tungsten materials were higher than those of 2016, indicating an increase in global tungsten consumption.

“Prices of tungsten concentrates, and downstream tungsten materials continued the upward trends that began in late 2015 or early 2016.”

The International Tin Association describe tin as “the forgotten EV metal”, emphasising that it is now making ground on its contemporaries, “as a performance enhancing component in all of the three generations of advanced anode materials that have been road-mapped to 2030, plus some solid-state technologies.’”

The current market focus may be on the likes of lithium and cobalt for the manufacture of lithium-ion batteries, but according to the Association there is a newer generation of cheaper, safer products already in development, including sodium-ion, magnesium-ion, potassium-ion and other products.

“Tin, its alloys and compounds are prominent candidates for anode materials in some of these, and a growing number of developments including tin are noted,” the Tin Association claims.

“Although performance of some prototypes already exceeds commercial lithium-ion products, it is likely that such products will find their own market space and indeed some are already being used in niche markets.”

Other battery technologies are under development, particularly for larger scale utility power storage opening opportunities for tin, possibly in liquid metal technologies or as a catalyst in redox flow batteries.

Other recent work on ion-exchanging technologies includes tin as a possible metal-ion candidate.

Venture believes now is the time for Mt Lindsay where it has a large Resource base to draw from.

Tin recently hit around US$21,000 per tonne, an increase of some 60 per cent since January 2016.

Tungsten’s APT price has touched the plus-US$300 per MTU, representing an increase of 90 per cent since February 2016.

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.”

On top of the Big Wilson target, Venture has successfully defined eight new targets it considers prospective for high-grade tin-tungsten mineralisation.

There are also several targets that appear to be prospective for copper and nickel mineralisation.

These targets are hosted within the broader skarn units identified throughout the Mount Lindsay area of which to date only 10 per cent have been drill tested.

Venture has already completed reconnaissance work designed to identify additional targets in the broader Mount Lindsay area.

 

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

 

Global Geoscience: Lithium and Boron on Equal Terms

THE INSIDE STORY: Global Geoscience (ASX: GSC) is developing a unique dual-streamed lithium-boron deposit, ideally located in the United States in proximity to a growing potential customer base.

Global Geoscience’s 100 per cent-owned Rhyolite Ridge lithium-boron project is in the US state of Nevada is close to existing infrastructure and just 25 kilometres west of Albermarle’s Silver Peak lithium mine and 340km from the Tesla Gigafactory near Reno.

Rhyolite Ridge is one of the largest lithium and boron deposits in North America and has the potential to become a strategic, long-life and low-cost source of lithium and boron.

Being a dual-stream lithium and boron deposit, neither being by-products as they are two co-products, Rhyolite Ridge has the potential of producing equal revenue streams for both commodities, which places the project within a category of its own.

The Rhyolite Ridge project has a total Indicated and Inferred Resource that currently stands at 460 million tonnes at 0.9 per cent lithium carbonate and 2.6 per cent boric acid, containing 4.1 million tonnes of lithium carbonate and 11.9 million tonnes of boric acid.

The high-grade lithium-boron component of the Resource is estimated at 137 million tonnes at 1800ppm lithium (equivalent to 0.9% lithium carbonate) and 1.26 per cent boron (equivalent to 7.2% boric acid), with 75 per cent of the Resource in the Indicated category.

Global Geoscience has already demonstrated lithium and boron can be readily extracted by simple heap leach processing with high recoveries.

The company carried out heap leach processing of Rhyolite Ridge lithium-boron mineralisation returning lithium and boron recoveries of 88 to 92 per cent.

Metallurgical and environmental studies are in progress as part of the overall Rhyolite Ridge Pre-Feasibility Study, which is scheduled for completion in the second half of the year.

Global Geoscience is looking at Rhyolite Ridge in terms of it supporting a long-life mining operation at rates of 2 million tonnes per annum to 4 million tonnes per annum.

At present, the company is considering two development paths: the first being a smaller 2 million tonnes per annum starter pit based on a 26 million tonnes resource, and the second, a larger, unconstrained pit based on an 87 million tonnes Resource able to support 4 million tonnes per annum.

The smaller starter pit is winning at this stage as it has the potential to be granted fast tracked permitting by the US Government.

Independent metallurgical testwork has shown that simple, low-cost heap leach processes can be used to extract lithium and boron at high recovery rates into a Pregnant Leach Solution (PLS), from which lithium and boron can be removed through crystallisation and purification steps to produce lithium carbonate and boric acid at the mine.

Being able to extract lithium and boron via heap leaching at modest acid consumption rates means the project can operate using lower capital and operating costs when compared to other forms of acid leaching such as agitation (tank) leaching that require crushing, grinding, filtration and leach tanks.

It also demands substantially lower capital and operating costs to those involved with hard rock lithium deposits (spodumene, mica, clay) that require beneficiation and high-temperature conversion or roasting to liberate the lithium from the lithium-bearing minerals.

Assuming a processing rate of 2 million tonnes per annum of ore, the project would generate revenue of about US$240 million per annum split equally between lithium carbonate (US$8,000/t conservative long-term pricing) and boric acid ($800/t).

The company believes operating margins of 100 per cent are achievable with Rhyolite Ridge producing lithium carbonate and boric acid at roughly half the long-term prices being used.

“It doesn’t really matter how big a deposit is or where it is, if it isn’t going to be economic then it will not be viable,” Global Geoscience managing director Bernard Rowe told The Resources Roadhouse.

“Being a low-cost of production project due to its the unique mineralogy, Rhyolite Ridge allows us to consider heap-leach/vat-leach type options for the extraction of the lithium and the boron.

“Rhyolite Ridge is the only deposit in the world of lithium or boron, certainly of lithium, that has been demonstrated to be processable by heap-leach or vat-leach.

The advantage of either processing route means less preparation is needed before leaching the ore and that the company will basically just need to crush the ore then pour on the acid with no secondary crushing, grinding, or beneficiating required.

“It is a simple operation, we just dig it, crush it, then leach it,” Rowe said.

“At Rhyolite Ridge the minerals containing the boron and the lithium are quite soluble in relatively dilute acid, which we demonstrated by reducing the feedstock crush size to minus 38 millimetres from the minus 150 millimetres in earlier tests.

“Once you put the acid on it you produce a solution, from which you crystallise the lithium and boron, it is a simple flowsheet.

“Realistically, there are no other lithium deposits in the world where utilising this sort of flowsheet is being contemplated.

“Clearly that can’t be done with a spodumene deposit and the other sedimentary types, like lithium clays, also require high-temperature roasting for other reasons, but essentially it is not suitable to try and leach clay deposits with the diluted acid we are talking about at Rhyolite Ridge.”

The United States is the ideal location for such a project with the country being the second-largest market for boric acid in the world, meaning Rhyolite Ridge’s production is likely to have a ready-made customer base in the domestic market.

Currently, there is very little in the way of advanced lithium projects in the United States, apart from one existing producer, which only produces about 4000 tonnes of lithium carbonate per annum.

President Trump has stated the country’s need to establish a supply of critical metals, indicating lithium is one of those metals and if, as many analysts predict, the US is going to embrace the uptake of electric vehicles and power storage, demand is set to grow.

From a boron perspective, the US is currently a major producer of borates, due mainly to a boron mine operated by Rio Tinto in California, however this is an old mine that is getting more expensive to mine as it approaches the end of its life.

Turkey is the country to presently host an abundance of boron with only a few known large boron deposits being either developed or mined elsewhere in the world.

These are Rhyolite Ridge, the Californian deposit mentioned above and the Jadar deposit in Serbia, also owned by Rio Tinto.

“Potential boron production outside of Turkey remains very limited and yet the US is a major consumer of borate products, as is China, which has limited supply of its own,” Rowe continued.

“Japan, Taiwan, and South Korea are all big boron consumers, so the situation exists where Pacific countries are the dominant consumers while future production, other than Rhyolite Ridge – as it currently stands – has to come from Turkey and Serbia.”

Global Geoscience expects to have the PFS completed in mid-2018, which it anticipates will confirm the company’s view that it has an economic pathway to develop the Rhyolite Ridge deposit into a substantial, low-cost, near-term producer of lithium carbonate and boric acid.

 

Global Geoscience Limited (ASX: GSC)
…The Short Story

HEAD OFFICE
Suite 203
161 Walker Street
North Sydney, NSW, 2060

Ph: +61 2 9922 5800

Email: rhowe@globalgeo.com.au
Web: www. globalgeo.com.au

DIRECTORS
James D. Calaway, Bernard Rowe, Alan Davies, Patrick Elliott, John Hofmeister