Blackstone Minerals Encounters Further Broad Nickel Sulphide Intersections at Ta Khoa

THE DRILL SERGEANT: Blackstone Minerals (ASX: BSX) enjoyed a good start to the 2019 Brisbane Resources Roundup by reporting on the second round of results from maiden drilling at the company’s Ta Khoa nickel project in Northern Vietnam.

The Resources Roadhouse caught up with Blackstone Minerals managing director Scott Williamson at the 2019 Brisbane Resources Round-up.

Blackstone Minerals said the second round of results from diamond drilling at the Ta Khoa project delivered further substantial intersections of disseminated nickel sulphide as well as noteworthy PGEs.
The maiden drilling results from the latest six drill holes in the program include:

BP19-04
16.6 metres at 0.34 per cent nickel, 0.04 per cent copper, 0.01 per cent cobalt and 0.07 grams per tonne PGE from 104.4m;

BP19-05
15.8m at 0.57 per cent nickel, 0.07 per cent copper, 0.01 per cent cobalt and 0.26g/t PGE from 118.2m;

BP19-06
27.7m at 0.88 per cent nickel, 0.09 per cent copper, 0.01 per cent cobalt and 0.74g/t PGE from 101m;

BP19-08
29.4m at 1.00 per cent nickel, 0.12 per cent copper, 0.02 per cent cobalt and 0.6g/t PGE from 140.6m;

BP19-09
11.9m at 1.46 per cent nickel, 0.15 per cent copper, 0.02 per cent cobalt and 1.09g/t PGE from 107m; and

BP19-10
33.3m at 0.80 per cent nickel, 0.09 per cent copper, 0.01 per cent cobalt and 0.37g/t PGE from 136.9m.

“Drilling at Ta Khoa continues to deliver significant intersections of disseminated nickel sulphide and, with the recently identified potential for substantial platinum group element (PGE) credits, the Ban Phuc DSS is shaping up to be a globally significant nickel sulfide system,” Blackstone Mineral managing director Scott Williamson said in the company’s announcement to the Australian Securities Exchange.

Blackstone is the first company to assay the Ban Phuc DSS for PGEs that has resulted in the recent uncovering of what it considers as a previously unrecognised opportunity.

Previous operators focused on the Ban Phuc MSV, which has relatively low PGE grades, and hence did not consider or investigate the full potential of the PGEs throughout the Ta Khoa project.

Blackstone feels its maiden PGE assays combined with the abundance of disseminated nickel sulphide targets suggest PGEs associated with disseminated nickel sulphide mineralisation could greatly improve the economics of the Ta Khoa nickel project.

 

Email: admin@blackstoneminerals.com.au

Web: www.blackstoneminerals.com.au

 

Pioneer Resources Receives Cade Spodumene Drilling Results

THE DRILL SERGEANT: Pioneer Resources (ASX: PIO) received assay results from the final 11 holes of a recent drilling program completed at the company’s 100 per cent-owned Pioneer Dome project in Western Australia.

The Resources Roadhouse managed a quick chat with Pioneer Resources managing director David Crook at the 2019 Brisbane Resources Round-up.

Pioneer Resources carried out the drilling that tested two of four lithium-caesium-tantalum (LCT) pegmatite targets, resulting in the discovery of the Cade spodumene deposit.

The drilling also encountered intersections of mineralisation at Spodumene Target 1.

Assays have been received for holes PDRC278 through PDRC288, and include:

From the Cade deposit, intersections of low iron spodumene:

PDRC278
15 metres at 1.48 per cent lithium oxide (Li2O);

PDRC287
13m at 1 per cent Li2O; and

PDRC288
15m at 1.13 per cent Li2O.

From the CNE target, which was an unrecognised pegmatite located immediately northeast of the Cade deposit:

PDRC282
4m at 1.22 per cent Li2O.

From Spodumene Target 1, which outcrops approximately 2km west of the Cade Deposit:

PDRC291
10m at 1 per cent Li2O.

Pioneer noted that all mineralised pegmatites remain open and that drilling is expected to resume in November to further determine their dimensions.

The company highlighted that the four targets it has identified to date have same apparent orientation and dip, suggestive of regional pegmatite stacking.

“The Cade deposit is a significant low-iron spodumene discovery confirmed by our first pass of drilling,” Pioneer Resources managing director David Crook said in the company’s announcement to the Australian Securities Exchange.

“This is testament to the way Pioneer approaches exploration and provides us with an outstanding starting base from which we hope to build a substantial lithium project.”

The drilling scheduled to resume in November will initially target mineralisation at Spodumene Target 1 and the CNE pegmatite, as well as other substantiated geochemical and geophysical targets, including anomalies identified by deep ground penetrating radar (DGPR) survey that is currently in progress.

In addition, six diamond core holes will be drilled into the Cade spodumene deposit to test the proposed plunge of the mineralisation and to produce samples for metallurgical testing.

 

Email: info@pioresources.com.au

Web: www.pioresources.com.au

 

Middle Island Resources Limited (ASX: MDI)

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

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

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

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

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

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

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

Initial results included a best intercept at Davis West of:

MSRC259
1 metre at 1.88 grams per tonne gold from 23m depth.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

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

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

 

Metalicity Limited (ASX: MCT)

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

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

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

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

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

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

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

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

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

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

Additionally, this scientific edge has influenced further project acquisitions.

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

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

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

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

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

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

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

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

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

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

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

 

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

Directors: Andrew Daley, Mathew Longworth, Justin Barton

 

Galileo Mining Ltd (ASX: GAL)

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

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

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

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

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

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

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

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

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

Success at Lantern target

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

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

Best assay results included:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

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

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

 

Corazon Mining Limited (ASX: CZN)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

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

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

 

Cassini Resources Limited (ASX: CZI)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

WAC0022
5m at 0.15 per cent zinc and 2g/t silver from 97m.

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

 

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

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

 

Carawine Resources Limited (ASX: CWX)

Carawine Resources has a portfolio of four exploration projects, three Western Australia and the fourth in Victoria, each targeted for their potential high-value deposit styles and commodity groups.

The company’s chief focus is the 100 per cent-owned Jamieson project, located near the township of Jamieson in the north-eastern Victorian Goldfields.

The project comprises granted exploration licence EL5523 and holds the advanced Hill 800 gold and Rhyolite Creek zinc-gold-silver prospects.

Hill 800 was discovered by New Holland Mining in 1994.

Fast forward to 2018 when Carawine carried out its maiden diamond drilling program of 14 holes, exceeding the company’s expectations regarding both the width and grade of gold mineralisation.

The maiden program allowed Carawine to re-interpret the geometry and orientation of the mineralised system as it identified multiple new mineralised zones.

Buoyed by the results, Carawine wasted little time in hitting the ground again for a second phase of diamond drilling at Hill 800 late in November 2018 that has continued into 2019.

Carawine recently announced some of the highest gold grades to be returned to date from its diamond drilling program at Hill 800, which achieved an increase in both the strike and width of the Stringer Zone mineralisation.

Assay results from the extension of hole H8DD004 that targeted strike extensions to gold and copper mineralisation in the Stringer and 650 Zones, produced intervals of:

Stringer and 650 Zones (combined interval)
67m at 2.13 grams per tonne gold, 0.1 per cent copper from 143m (0.3g/t Au cut-off).

Stringer Zone
49m at 2.54g/t gold, 0.2 per cent copper from 143m (0.3g/t gold cut-off), including:
17m at 6.62g/t gold, 0.3 per cent copper from 157m (1g/t gold cut-off), including:
1.1m at 10.3g/t gold, 1.0 per cent copper from 162m (10g/t gold cut-off); and

1m at 20.2g/t gold, 0.2 per cent copper from 166m (10g/t gold cut-off); and

2m at 37.5g/t gold, 0.3 per cent copper from 172m (10g/t gold cut-off)

650 Zone
14m at 1.28g/t gold from 196m (0.3g/t gold cut-off), including: 7m at 2.27g/t gold from 203m (1g/t gold cut-off)

“We recognised the importance of the Stringer Zone with our first drill holes at Hill 800 and these latest results show its potential to become a significant body of high-grade gold and copper mineralisation,” Carawine Resources managing director David Boyd said.

“Each hole we drill gives us a better understanding of its size, orientation and grade, defining a wide mineralised envelope containing numerous extremely high gold grades which together make a very attractive target.

“This is also just our second hole into the recently discovered 650 Zone, with the results showing an increase in gold grade and alteration intensity.

“Both zones remain open, with a drill hole currently in progress targeting the area immediately above these latest, exceptional intersections.”

Carawine is determined to maintain the pace at Hill 800 and already has planning underway for exploration programs that will investigate the potential to grow Hill 800 beyond the current limits of drilling, and other high-priority prospects within the Jamieson project such as Hill 700, Mt Sunday Road and Rhyolite Creek.

Meanwhile, way out west, Carawine has generated six new prospects at the Paterson project, in the eponymous Paterson Province of WA.

Six priority target areas have been identified at the Red Dog and Baton projects from a combination of historic drill and geological data, re-processing of airborne magnetic and electromagnetic (EM) geophysical data.

– Baton Project:
– Javelin and Wheeler prospects: Discrete bullseye magnetic anomalies (analogous to Havieron and Winu discoveries) hosted by the Broadhurst and Isdell Formations.
– Red Dog Project:
– Earl Prospect: discrete magnetic and EM anomalies on the edge of a large interpreted felsic intrusion;
– Leatherneck Prospect: Alteration zone within the Broadhurst Formation (host to the Nifty copper deposit), with associated anomalous zinc (to 2,380ppm) and copper (to 375ppm) in limited drilling;
– Bravo Prospect: discrete EM anomalies within interpreted altered and faulted Nifty host rocks;
– Duke Prospect: discrete bullseye magnetic anomaly and coincident gravity anomaly, magnetite-bearing calc-silicate skarn, around a quartz monzonite intrusive. Anomalous copper (to 965ppm) and tin (indicative of skarn mineralisation) grades in limited drilling.

Carawine is planning to advance these prospects to drill-ready status, while continuing target generation work for other Paterson tenements.

“At Red Dog…we now have access to geophysical datasets which have only recently become available,” Boyd said.

“This combined with our knowledge of mineralisation styles and settings in the region has allowed us to identify…six highly prospective new targets.

“Our focus will now shift to planning the next stage of exploration on these tenements.”

 

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

Directors: Will Burbury, David Boyd, Bruce McQuitty, David Archer

 

Not Just Any Old Iron

There has been plenty of column space across industry media devoted to the unfortunate tailings dam disaster suffered by Brazilian iron ore giant Vale.

There has also been an equal amount of column space dedicated to how our domestic iron ore titans of BHP, RIO and FMG would be the beneficiaries of the tragedy, given that iron ore customers worldwide would need to tap them to fill the shortfall.

Throw into that mix the affects of a recent cyclone on RIO’s Western Australian operations and the global stockpile just got a touch smaller.

What hasn’t received too much attention, is that there are plenty of junior companies with reserves of iron ore that only need to push a button to get their operations up and running and profitable.

Case in point: Venture Minerals (ASX: VMS) and the company’s Riley DSO iron ore mine in Tasmania.

Venture Minerals launched a review of the Riley mine earlier this year on the back of the recovery in the iron ore price, and after receiving expressions of interest by several third parties in the Riley ore.

Venture has had the Riley iron ore mine on care and maintenance since August 2014, before which the company had completed extensive pre-production work having already put in place all the necessary requirements to commence mining.

This means the Riley was then and, more importantly, is now a ‘quick to market’ opportunity for the company.

The current state of the iron ore market and price metrics are favourable to a start up at Riley and any further increase in the iron ore price and/or a decrease in the AUD/USD exchange rate will only further improve the economics of the project.

A quick, back of the envelope, sketch of the Riley project highlights its potential.

Riley is a fully permitted iron ore mine that is positioned to recommence operations reasonably quickly with approximately 90 per cent of the equipment Venture had previously purchased still on site.

The project hosts Reserves of 1.8 million tonnes at 57 per cent iron with low impurities within a DSO deposit that is situated all at surface and located less than two kilometres from a sealed road that accesses existing rail and port facilities.

“The previous work we carried out at the Riley iron ore mine has placed Venture in a strong position,” Venture Minerals managing director Andrew Radonjic told The Resources Roadhouse.

“Should the market continue to tighten, and the iron ore price continue to improve, that just provides the company the ideal opportunity to commence production with relatively short notice.”

The added benefit of bringing the Riley project on stream is that although it has a short minelife it is anticipated to generate anywhere from $20 million to $40 million, depending how the iron ore price travels.

Such a healthy cash injection will mean that Venture will not need to tap the market for the funds required to conduct development work on its 100 per cent-owned Mount Lindsay tin and tungsten project, also in Tasmania.

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

Tin is a vital element of modern-day technology due to its ability to make lithium-ion batteries last more than three times longer to meet the anticipated demand for better batteries in mobile phones, cameras, iPads and other mobile devices and the feverishly advancing hybrid and all-electric car market.

The 148 square kilometre Mount Lindsay 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.

Since acquiring the project in 2007, Venture has defined high-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.

Venture Minerals recently engaged UTS Geophysics to conduct a high-resolution Airborne Electromagnetic (EM) survey using its VTEMTM Max system over the entire Mount Lindsay project, with the aim of identifying further high-grade tin targets, especially those with the potential to host Renison Bell style mineralisation.

Venture’s previous exploration at Mount Lindsay has identified potential tin targets located within the carbonate units and potentially the same fault zone (Federal-Basset Fault) that hosts the Renison mine, just 12kms along strike to the southeast.

As Renison is a major Skarn, carbonate replacement, pyrrhotite-cassiterite style deposit, Venture considers the VTEMTM Max system to be the best exploration tool for making discoveries of Renison style tin mineralisation at Mount Lindsay.

The company is hopeful the EM survey will generate drill targets that lead to further tin discoveries.

The company is continuing to advance the recently commissioned Underground Scoping Study at Mount Lindsay.

The study is focusing on the previously reported high-grade Resources of 4.7 million tonnes at 0.4 per cent tin and 0.3 per cent tungsten and will be looking to leverage on the earlier Feasibility Study.

“There has been quite a lot of work carried out to advance the scoping study we have underway at Mount Lindsay,” Radonjic said.

“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.”

Venture Minerals is considering an underground mining scenario for Mount Lindsay.

The company believes an underground operation would lower its 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.

Although it is currently concentrating on the Tasmanian assets within its portfolio that are more towards near-production, the company’s Thor project is making rumblings as an ideal candidate for a Joint Venture.

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

Venture’s latest drilling at the Thor prospect intersected further massive sulphides with copper and zinc mineralisation.

The company has interpreted results from the last two holes drilled to suggest it is vectoring in towards higher-grade zones within the Thor Volcanogenic Massive Sulphide (VMS) sequence.

Drilling at Thor remains sparse with only two single drill holes drilled to date targeting two of thirteen priority VMS drill targets delineated around the initial discovery area.

The company hopes further drilling will unlock the potential of Thor’s 20km VMS target zone.

In this second drill campaign, drill hole TOR05 intersected massive sulphide zones of up to 2.4 metres (271.45m to 273.85m) and returned assays of up to 0.8 per cent zinc and 0.5 per cent copper and highly anomalous cobalt of up to 435ppm, confirming the prospect’s VMS style of the mineralisation.

Thor has the same EM and geochemical signature as the adjacent VMS Kingsley discovery of international mining company Teck, which is one of several VMS occurrences in the Archean Yilgarn Craton of Western Australia.

“We have been greatly encouraged by these latest results from our drilling program underway at Thor,” Radonjic said.

“We are really looking forward to unlocking the potential of the VMS project to deliver high-grade mineralisation in the near future.”

 

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

Directors: Mel Ashton, Hamish Halliday, Andrew Radonjic, Dr Stuart Owen

 

Galan Lithium Animates The Life of Brine

With potential world-class projects in one of the hottest lithium jurisdictions globally, cash in the bank and a handful of exceptional exploration results under its belt, things are certainly looking promising for Galan Lithium Limited (ASX: GLN).

The Argentina, lithium-focused minnow wholly-owns six projects covering around 25,000 hectares, with potential lithium brine coverage conservatively comprising around 7,800 hectares, in South America’s Lithium Triangle on the Hombre Muerto salar in Argentina.

Straddling the northwest corner of Argentina, northern Chile and southwest corner of Bolivia, the Lithium Triangle hosts the world’s largest reserves of lithium and around 60 per cent of world’s annual production of lithium, the bulk of which lies in the Atacama salar in Chile and Hombre Muerto salar in Argentina.

Hombre Muerto – which lies in the northwest corner of Argentina – hosts the highest grade and lowest impurity levels of lithium in the country and is the second best salar in the world globally for lithium brine production after Atacama.

Galan believes its landholding in the Hombre Muerto has the potential to host a substantial lithium deposit.

Its six projects – Rana de Sal, Deceo, Catalina, Peta Pila, Santa Barbara and Candelas – are all strategically located in the salar, boarding some of the biggest names in the lithium brine space globally.

The Sal de Vida project – owned by ASX-listed Galaxy Resources with a market cap of $750 million – is regarded as one of the world’s largest and highest quality undeveloped lithium brine deposits.

Galaxy recently sold off the northern portion of the project to POSCO – market cap $30 billion – for a cool US$280 million.

To the west of Sal de Vida lies recent New York-listed Livent Corporation’s Fenix operation which has been in production for over 27 years.

Importantly, Galan has a wealth of experience on its board: managing director Juan Pablo Vargas de la Vega has over 15 years’ experience in ASX mining companies, stockbroking and private equity firms and was a specialist lithium analyst in Australia.

He also has operated a private copper business in Chile and has worked for BHP, Rio Tinto and Codelco.

Priority target – Candelas

Priority target, Candelas, lies adjacent to Sal de Vida and encompasses an approximately 15km long by 3-5km structurally controlled basin, infilled with sediments hosting the brines.

According to Galan’s interpretation of CSAMT (Controlled Source Audio‐frequency Magnetotellurics) surveys, the project showed “…very conductive and shallow units that are compatible with units being saturated with brine, which constitute a great potential for lithium exploration.”

With the geophysical results defining the brine potential, Galan set about planning a maiden drill program to test the geophysical model as well as detailed data on the stratigraphy within the Candelas channel.

After getting the greenlight from the Argentinean government, Galan kicked off a five-diamond hole program in January to test the 12-15-kilometre extent of the Candelas channel.

Results so far from the program have sent tongues wagging in the minerals investment community.

Living up to the hype

Drilled immediately to the southeast of the Hombre Muertos salar, Galan’s maiden hole (C-01-19) certainly lived up to the company’s expectations.

The hole hit a substantial intercept of brine from depths of approximately 200m metres to the end of the hole (401m).

An exceptional high-grade intercept of 192m at 802mg/I Li was returned.

Importantly impurities (magnesium and sulphate) were very low and similar to those observed nearby at the Fenix and Sal de Vida operations.

The maiden hole results sent Galan’s share price skyrocketing to an all-time high of 68 cents in early March 2019.

With their tails in the air, Galan quickly set about drilling their second hole some 9.5km south of the maiden drillhole and located on geophysical CSAMT line 4.

The hole, unfortunately, didn’t quite live up to its predecessor.

While geology was largely similar to that observed in the maiden drillhole, the tectonic basin in the area was much deeper, perhaps up to around 750m, than in the north where C-01-19 was drilled.

Assay results from the hole confirmed field observations that a lower grade lithium bearing aquifer was intercepted.

The lower values were a result of heavy dilution from hydrothermal waters being sourced from an adjacent deep-seated fault zone.

Nearby fumaroles observed at surface supported this interpretation.

C-02-19 was eventually completed to a depth of 662m with basement encountered at 632m.

Third time’s a charm

Despite this slight setback, Galan remained optimistic that Candelas hosted a large lithium resource.

“Much has been achieved to date in a short time frame,” Vargas de la Vega said.

“We are dealing with a unique geological setting for lithium brines and our knowledge of the region increases with the more work we do.

“The lithium potential remains strong for Candelas as it does for our prospective Western tenements at Hombre Muerto.”

Galan quickly set about drilling its third hole (C-03-19) at Candelas, this time 2.5km south of its highly successful maiden hole.

In what was a great relief for the company, the hole intercepted highly conductive brines over around 154m from 276m to the end of hole (430m).

“The discovery of further brines within the Candelas channel reinforces our view that the project has the very real potential to host a significant lithium resource in one of the world’s premium salars at Hombre Muerto,” Vargas de la Vega said.

Downhole geophysics indicated highly conductive and high Specific Gravity (SG) brine was still being encountered to the bottom of the hole resulting in the hole being further deepened to a final depth of 454m.

Several packer tests were performed using the downhole data as guidance which indicated a preferred section from 313m to 454m with conductivities in excess of 200mS/cm and SG readings approximately 1.19 g/cm3.

The rig has now been moved around 3km south of C‐03‐19 and 5.3km south of drill hole C‐01‐19 on CSMAT Line 3 where it has begun drilling the fourth hole.

Galan is also seeking permits from Catamarcan authorities for further drillholes at Candelas beyond the initial five holes approved.

Cashed-up

Shortly after announcing the positive results from its third drillhole in April, the company set about raising $4 million at 27.5 cents per share to fund its ongoing drill campaign at Candelas and start initial resource work.

The share placement received strong support from Australian and North American professional and sophisticated investors.

“We are pleased to have received such strong support from a range of Australian and North American investors, who now join our existing shareholders in aligning themselves to the success we are looking to achieve through our ongoing exploration at the Hombre Muerto lithium project,” Vargas de la Vega said.

“We have achieved positive results to date, which we plan to expand through well planned exploration activities.”

Looking ahead

With significant results under its belt so far from its maiden drill program at Candelas and a $4 million boost to its coffers, Galan is fast tracking exploration with a potential resource estimate targeted for third quarter 2019.

Lithium demand has jumped since 2015 fuelled by the spike in demand for lithium batteries in electric vehicles with current prices around the $US12,550 per tonne lithium carbonate equivalent (LCE).

This demand is only expected to increase with the number of electric vehicles on the world’s roads set to triple by 2020, placing further upward pressure on prices.

 

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

Directors: Nathan McMahon, Christopher Chalwell, Terry Gardiner, Juan Pablo Vargas de lea Vega