THE DAILY ROADHOUSE

Golden Rim Resources Accelerates Kouri Exploration

THE DRILL SERGEANT: Golden Rim Resources (ASX: GMR) is making exploration campaign progress at the company’s Kouri gold project in Burkina Faso.

Cygnus Gold and Gold Road JV Operating Smoothly

THE DRILL SERGEANT: Cygnus Gold (ASX: CY5) has been kept busy of late at the company’s Joint Ventures with Gold Road Projects, a wholly-owned subsidiary of gold producer Gold Road Resources (ASX: GOR).

Comet Resources Identifies Priority Graphite Targets

THE DRILL SERGEANT: Comet Resources (ASX: CRL) has had an aerial electromagnetic survey (EM) carried out over the company’s Springdale graphite project in southern West Australia.

AMEC’s Overtures Result in WA Government Lithium Sector Review

IN THE LOBBY: The Western Australian lithium sector received a recent boost in the form of a supportive announcement from the State government.

AMEC’s Overtures Result in WA Government Lithium Sector Review

IN THE LOBBY: The Western Australian lithium sector received a recent boost in the form of a supportive announcement from the State government.

The WA government announced lithium royalty amendments to encourage downstream processing, a raft of changes it said would provide much needed support to the state’s battery materials sector.

WA Mines and Petroleum Minister Bill Johnston announced a regulatory review would be undertaken that would include a high level of input from industry players, indicating that the McGowan Government will introduce a new royalty arrangement for lithium producers that will encourage downstream processing and manufacturing.

“The McGowan Government is committed to supporting Western Australia’s battery materials industry,” Johnston said.

“Updating the royalty arrangements provides a fairer system for all lithium producers and will enable Western Australia to move up the battery value chain beyond mining and processing.

“This will create more jobs and encourage innovation in meeting the needs of the growing demand for electric vehicles and battery storage systems.

“Western Australia is increasingly becoming an internationally attractive destination for downstream processing and manufacturing of lithium and other battery minerals.”

The Department declared that a five per cent feedstock royalty rate for lithium hydroxide and lithium carbonate, where those are the first products sold and the feedstock is spodumene concentrate, will be introduced as soon as practicable.

The government believes this new royalty arrangement clears up any uncertainty regarding lithium royalties, compared to the previous regulations.

The new lithium feedstock royalty rate, introduced via amendment to Mining Regulations 1981, is hoped to ensure all lithium producers are treated equally, in turn encouraging further downstream processing of lithium in Western Australia.

The Association of Mining and Exploration Companies (AMEC) was one of the first to react to the announcement and it was not surprising that it was in a positive vien.

AMEC said it was a good result for the sector and was a response it was hoping to see from its suggestion to the government to introduce appropriate incentives to encourage development throughout the supply chain in the body’s Lithium Industry in Australia Report published with Future Smart Strategies in January 2018.

“Today’s royalty rate announcement helps Western Australia compete internationally to lock its place in the global lithium value chain,” AMEC CEO Warren Pearce said.

“Defining the royalty provides certainty for companies investing in Western Australia and will support the financing of projects and further investment.

“Western Australia has a phenomenal geological opportunity, particularly in battery minerals, but needs to make sure the regulatory settings are right so companies will choose to invest here.

“Today’s announcement increases certainty and Western Australia’s investment attractiveness for lithium downstream processing.”

 

 

THE DAILY ROADHOUSE

TODAY’S NEWS HOT OFF THE ROADHOUSE 

 

Galan Lithium Confirms High Grades in Argentina

THE DRILL SERGEANT: Galan Lithium (ASX: GLN) informed the market on progress of its current drilling program underway at the company’s Western Basin projects, located on the Hombre Muerto salar in Argentina.

 

St George Mining Confirms Nickel-Copper Sulphide Discovery

THE DRILL SERGEANT: St George Mining (ASX: SGQ) announced that laboratory assays have confirmed a healthy intersection of high-grade nickel-copper sulphides at the Radar prospect – the latest discovery at the company’s Mt Alexander project, located in the north-eastern Goldfields of Western Australia.

 

Musgrave Minerals Drills and Rock Chips High-Grade Gold at Cue

THE DRILL SERGEANT: Musgrave Minerals (ASX: MGV) reported on recent activity undertaken at the company’s Cue gold project in the Murchison district of Western Australia.

 

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.

 


Email: info@musgraveminerals.com.au

Web: www.musgraveminerals.com.au

 

Roadhouse at the Gold Coast

The Resources Roadhouse will be attending the Gold Coast Investment Showcase to be held on the ​25 & 26 June 2019 at ​Surfers Paradise Marriott Resort & Spa, Queensland.

 

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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.”

 

Email: info@vrxsilica.com.au

Website: www.vrxsilica.com.au

 

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:

18USRC302
20 metres at 9.1 grams per tonne gold from 50m;

18USRC264
28m at 0.69g/t gold from 62m, including 5m at 1.52g/t gold from 73m; and

18USRC265
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:

18USRC293
10m at 3.05g/t gold from 102m; and

18USRC287
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:

18USRC272
4m at 3.32g/t gold from 218m;

18USRC275
5m at 2.15g/t gold from 167m; and

18USRC282
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.”

Website: www.genesisminerals.com.au

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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.

WTRCDD122
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.”

 

Email: info@peelmining.com.au

Website: www.peelmining.com.au

 

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:

MF18-53
68.3 metres from a depth of 82.7m;

MF18-57
30m from a depth of 117m;

MF18-58
29.8m from a depth of 116.8m; and

MF18-51
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.”

 

Email: info@pioresources.com.au

Website: www.pioresources.com.au