Musgrave Minerals Progressing Drilling at Lena Deposit

THE CONFERENCE CALLER: Musgrave Minerals (ASX: MGV) is currently busy carrying out reverse circulation (RC) drilling on the Lena deposit at the company’s Cue project in Western Australia’s Murchison district.

The Lena deposit has an existing JORC 2012 resource of 2,682,000 tonnes at 1.77 grams per tonne gold for 153,000 ounces estimated at Lena Main to a maximum vertical depth of 160 metres.

The Lena deposit consists of several gold lodes, with Musgrave considering some to hold high-grade potential at depth.

Interpretation of historical drill data has identified a high-grade southerly plunging shoot on the main lode that remains open at depth below the current JORC resource.

The current drilling program will use a combination of RC (pre-collars) and diamond drilling to better define and infill this high-grade gold shoot below the existing resource.

The aim of the program is to improve the geological confidence in the continuity of the mineralisation by reducing the drill spacing to enable an upgrade of the Lena resource estimate.

Musgrave Minerals managing director Rob Waugh sat down with The Resources Roadhouse at the 2019 Diggers & Dealer Mining Forum in Kalgoorlie to provide an update on how the drilling was progressing.





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VRX Silica Identifies High Purity Quartz at Warrawanda Project

THE DRILL SERGEANT: VRX Silica (ASX: VRX) reported results of rock chip samples from the company’s Warrawanda project, located south of Newman in Western Australia.

VRX Silica has held the Warrawanda project since 2011, when it listed on the ASX as Ventnor Resources.

At that time, however, the company’s focus was on the project’s nickel prospectivity, namely on a massive ultramafic intrusion which runs east-west across the tenements.

Since having changed direction to supply the Silica Sand market, VRX re-evaluated the tenement to examine the quartz outcrops that dot the landscape in the granites adjoining the ultra-mafic intrusion.

Three outcrops were initially sampled producing results at each the company considers to indicate the potential to produce a High Purity Quartz (HPQ) product.

“This is potentially yet another product we can supply in to the Silica market,” VRX Silica managing director Bruce Maluish said in the company’s announcement to the Australian Securities Exchange.

“The HPQ market is much smaller and industry specific than the silica sand market for glassmaking but it is significantly higher value with prices up to US$300 per tonne for crushed and bagged HPQ.

“High purity quartz is a special category of silica and used in high added value products, particularly optical fibres, LED lights, silicon manufactured for use in the electronics industry, photovoltaic cells and high-tech glass.

“There is significant growth in the production of LED lights and a high market demand for HPQ.

“The Warrawanda HPQ project is close to the town of Newman and immediately adjacent to Great Northern Highway which connects to Fremantle with ample opportunity for backloads from trucks servicing the Pilbara.

“The company will conduct a diamond drill program to test the extent and quality of the deposits mid-year following an Aboriginal Heritage survey.”





Genesis Minerals Confirms Ulysses Satellite Discovery

THE DRILL SERGEANT: Genesis Minerals (ASX: GMD) announced an encounter with shallow oxide mineralisation at the Orient Well NW prospect, located east of the Ulysses Mineral Resource at the company’s 100 per cent-owned Ulysses gold project, 30 kilometres south of Leonora in Western Australia.

Genesis Minerals carried out follow-up drilling at Orient Well NW, claiming the result from which have confirmed a zone of shallow oxide gold mineralisation.

Assays returned:

20 metres at 9.1 grams per tonne gold from 50m;

28m at 0.69g/t gold from 62m, including 5m at 1.52g/t gold from 73m; and

8m at 1.8g/t gold from 108m.

Genesis Minerals said the results continue to demonstrate the potential to define Resources outside of the Ulysses deposit while highlighting the under-explored nature of the broader project.

Further extension drilling at Ulysses also produced encouraging results from wide-spaced, extensional RC drilling targeting strike extensions to the Ulysses Mineral Resource of 7.1 million tonnes at 3.3g/t gold for 760,400 ounces.

New extensional drilling results at Ulysses East, outside of the Resource, include:

10m at 3.05g/t gold from 102m; and

5m at 5.08g/t gold from 75m.

Genesis indicated its intentions to systematically test the potential high-grade gold shoot position the drilling has defined at Ulysses East.

Extensional drilling conducted immediately east of the Resource demonstrated mineralisation continues outside and to the east of the Resource with results including:

4m at 3.32g/t gold from 218m;

5m at 2.15g/t gold from 167m; and

4m at 2.44g/t gold from 150m.

“The outstanding results generated from shallow RC drilling at Orient Well NW show just how under-explored the broader Ulysses project is,” Genesis Minerals managing director Michael Fowler said in the company’s announcement to the Australian Securities Exchange.

“We have now outlined a very prospective oxide zone which spans a strike length of at least 1.5 kilometres.

“Achieving intercepts such as 20 metres at 9 grams per tonne gold in a completely greenfields position is an outstanding result, and we are really looking forward to drilling out this satellite prospect to a Resource level during the first half of 2019.

“At the same time, we have now received the remaining results from extensional drilling completed at Ulysses last year following the updated 760,000-ounce Mineral Resource announcement.

“The assays have identified step-outs to the mineralisation at Ulysses East and confirmed the presence of a potential new high-grade shoot position which needs to be systematically drill tested at depth.

“Drilling will resume at Ulysses at the end of the month, initially with one rig focusing on extensions at Ulysses and drilling out Orient Well NW.

“We will progressively bring more rigs online as the results begin to flow.

“Our overall objective is to deliver another upgrade to the Ulysses Mineral Resource by the end of Q2 2019.”



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CONTACT: Wally Graham

Peel Mining Confirms Southern Nights Mineralisation Continuation at Depth

THE DRILL SERGEANT: Peel Mining (ASX: PEX) reported drilling and geophysical results from the company’s 100 per cent-owned Wagga Tank/Southern Nights project, south of Cobar in western New South Wales.

Peel Mining said that assay results from drillhole WTRCDD122 confirmed a strongly mineralised intercept at more than 350 metres below surface adding substantial down-dip continuity to mineralisation at Southern Nights.

22.1 metres at 6.62 per cent zinc, 2.19 per cent lead, 0.87 per cent copper, 60 grams per tonne silver, 0.42g/t gold from 459m, including 5.1m at 18.36 per cent zinc, 5.71 per cent lead, 0.12 per cent copper, 72g/t silver, 0.2g/t gold from 476m.

Peel Mining said that follow-up drillhole WTRCDD124 confirmed the critical stratigraphic contact hosting Southern Nights’ mineralisation remains present at more than 500m below surface.

Downhole electromagnetic (DHEM) geophysical surveying of drillhole WTRCDD123 also identified an off-hole conductor the company considers to likely represent extensions to recently-reported mineralisation encountered in WTRCDD123 of:

14.45m at 2.43 per cent copper, 2.67g/t gold, 123g/t silver, 2.58 per cent zinc, 0.87 per cent lead from 435.55m.

Drillhole WTRCDD101, positioned south of Wagga Tank and north of Southern Nights, returned a mineralised interval that company determined as further evidence of a link between the deposits.

The intercept in WTRCDD101 is located some 250m south and around 250m up-dip of the intercept in WTRCDD123.

“WTRCDD123 is situated between Wagga Tank and Southern Nights and coupled with WTRCDD101 and other intervening drillholes has established a link between the two deposits,” Peel Mining said in its ASX announcement.

“Current drilling is focused on testing for deeper mineralisation at Southern Nights and in the Wagga Tank-Southern Nights corridor.

“Induced Polarisation (IP) geophysical surveys along with downhole electromagnetic (DHEM) surveys are continuing.

“A comprehensive review of geophysical data is also practically complete (final report awaited) whilst first-pass metallurgical testwork is continuing.”





Pioneer Resources Completed Mavis Lake Drill Program

Pioneer Resources (ASX: PIO) has completed a drilling program at the company’s Mavis Lake lithium project in the province of Ontario, Canada.

Pioneer Resources carried out the drilling in conjunction with its Joint Venture partner, TSX Venture-listed International Lithium Corp. (ILC).

The program targeted the Fairservice Pegmatite 6 prospect and consisted of nine diamond core holes, seven of which intersected mineralisation, including multiple wide intersections of spodumene-pegmatite that Pioneer considers to have enhanced the project’s prospectivity.

Results included:

68.3 metres from a depth of 82.7m;

30m from a depth of 117m;

29.8m from a depth of 116.8m; and

25.3m from a depth of 76.7m.

“The 2018 drilling program has greatly enhanced the project’s prospectivity as knowledge of the dimensions of the Fairservice Pegmatite 6 spodumene-pegmatite cluster, which isn’t evident in outcrop, is gained, Pioneer Resources managing director David Crook said in the company’s announcement to the Australian Securities Exchange.

“Mineralised drill core has been sent for analysis, with results expected by the end of March 2018.

“At this time the Joint Venture will further update the Market and describe plans for future drilling, as at this stage mineralisation has not been closed off.”





S2 Resources Sell WA Gold Projects to Westgold

THE BOURSE WHISPERER: S2 Resources (ASX: S2R) executed a binding Heads of Agreement with Westgold Resources (ASX: WGX) to sell its Western Australia gold project interests.

S2 Resources will sell Westgold its interest in the Polar Bear project (100%), Eundynie Joint Venture (80%) and the Norcott project (100%) via the sale of all of the shares in S2’s wholly owned subsidiary Polar Metals Pty Ltd.

Under the terms of the Agreement, S2 will receive $3 million cash plus four million Westgold shares.

Assuming a share price of $1.50 per share, the total consideration will be $9 million and S2 will sign a voluntary restriction agreement in respect of the Westgold shares for a period of six months from settlement.

S2 Resources said the sale add strength to its balance sheet with cash and investments now totalling approximately $25 million, which the company said enhances its capacity to focus time and funds on the opportunities presented in its overseas exploration activities.

It will also retain exposure to the upside of Polar Bear’s nickel prospectivity, which includes the Taipan and Halls Knoll nickel prospects discovered by S2’s precursor, Sirius Resources.

S2’s WA gold projects include the Baloo gold deposit, which despite being too small for S2 to develop as a stand-alone mining operation, is considered to be a good strategic fit for Westgold, which owns the Higginsville gold operation located within 10 kilometres of Baloo.

“We are pleased to have executed this agreement, which is part of our strategy to focus on those opportunities that we believe have the best potential to deliver a significant discovery, whilst minimizing the need for external funding and keeping our capital structure as tight as possible so that in the event of success our shareholders retain maximum leverage to it.

“We are also pleased to become a shareholder of Westgold and look forward to Westgold progressing the development and exploration of the WA gold projects.”




Kin Mining Finalises Ball Mill Acquisition

THE BOURSE WHISPERER: Kin Mining (ASX: KIN) exercised an option to acquire a 2.5 megawatt ANI-Ruwolt ball mill, CIL agitators and screens through the payment of $1.27 million to Macca-Interquip.

Kin Mining said the purchase completes the acquisition of necessary key equipment required for the development of the company’s Leonora gold project (LGP) in Western Australia, which currently under development.

Kin explained the purchase of the essential drive train components came with a few extras, including a spare motor, gearbox and pinion along with engineering details which will serve to reduce installation costs.

The ANI mill was last used at the Mt McClure gold operation in WA and is said to be in good condition with the six intertank screens and agitators being unused and in new condition.

The installation of the 2.5MW ball mill forms part of the upgrade of the Lawlers plant at the LGP, which Kin expects to provide single-stage primary grinding of the Cardinia ores at an annualised throughput rate of 1.5 million tonnes per annum.

“Kin has been very fortunate to secure this long lead equipment at a very competitive price,” Kin Mining managing director Don Harper said in the company’s announcement to the Australian Securities Exchange.

“Our construction team can now commence refurbishment work to ensure it can be installed according to the LGP development schedule.”





Blackstone Minerals Hits Encouraging Cobalt Numbers with First Hole at Little Gem

THE DRILL SERGEANT: Blackstone Minerals (ASX: BSX) announced results from the first hole drilled at the company’s Little Gem cobalt-gold project in British Columbia, Canada.

Blackstone Minerals explained the hole had kicked off its first drilling program to be carried out at the project and had intersected massive, semi-massive and disseminated mineralisation, producing results including:

4.3 metres at 1 per cent cobalt and 15 grams per tonne gold, including 1.1m at 3 per cent cobalt and 44g/t gold.

Blackstone claimed the initial results from the maiden drilling program are consistent with historic drilling and adit channel sampling, which returned average grades of 3 per cent cobalt and 20g/t gold.

The company indicated that the first hole had only tested the upper portion of the mineralised target where multiple zones of massive sulphide (cobalt-gold) mineralisation has been identified within a broader alteration halo.

The drilling is also consistent with historic underground drilling from adits including:

1.8m at 2.4 per cent cobalt and 112g/t gold;

3.3m at 1.4 per cent cobalt and 80g/t gold; and

3.3m at 1.4 per cent cobalt and 12.3g/t gold.

Results from historic adit channel sampling at Little Gem include:

1.8m at 4.4 per cent cobalt and 73g/t gold;

2m at 3.1 per cent cobalt and 76g/t gold; and

1.5m at 5.4 per cent cobalt and 26g/t gold.

“An outstanding result from our first drill hole at Little Gem,” Blackstone Minerals managing director Scott Williamson said in the company’s announcement to the Australian Securities Exchange.

“We look forward to recommencing the maiden drill program in Q2 2018.

“With further regional exploration results pending we continue to expand our understanding of the full potential of the project.

“These initial results confirm Little Gem as one of the highest-grade cobalt-gold projects in the world located within a region completely unexplored for cobalt.”