Coventry hits 320 g/t at Cameron

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THE DRILL SERGEANT: Canada-focused gold development company Coventry Resources has received final analytical results from a recently-drilled diamond hole at its Cameron gold deposit located in western Ontario.

The hole was drilled in order to evaluate the poorly-explored footwall zone of the Cameron deposit.

Coventry has previously reported visible gold intercepts at Cameron and the latest results have confirmed high-grade, shallow gold mineralisation to be present.

Recently received results include:

– 3.4 metres at 58.73 grams per tonne gold from 5.4 metres, including 0.6 metres at 320.0 grams per tonne gold from 5.4 metres.

Coventry said the visible gold intersected in the latest drill hole was contained within a quartz-carbonate-sulphide vein that appears to trend oblique to the main mineralisation at Cameron.

“Given the oblique orientation of this vein relative to the general direction of most previous drill holes, it is likely that additional high-grade vein sets of similar orientation exist,” Coventry Resources said in its ASX announcement.

“If so they would be under-represented in the drilling that has been completed to date (because previous drilling has not been optimally directed to test for mineralisation in this orientation).

“Further work is being planned to determine this. Additional drilling to target these oblique vein systems is likely.”

Coventry has also received results from two other holes drilled to further evaluate the footwall zone of the main deposit, which both intersected mineralisation, including:

– 7.0m at 6.95 g/t gold from 148.0m, including 2.0m at 17.40 g/t gold from 153.0m;

– 9.0m at 2.92 g/t gold from 79.0m; and

– 3.0m at 6.05 g/t gold from 160.0m.

“Significant shallow mineralisation has now been delineated in the footwall zone of the main Cameron gold deposit over a strike length of more than 200 metres,” Coventry said.

“These results are expected to further positively impact on the impending resource upgrade as well as the overall economics of an open pit mining operation at the Cameron gold project.”

The results from a further 11 holes undertaken by the company to evaluate potential northern and north-western extensions to the Cameron deposit have also come in with encouraging figures including:

– 5.0m at 6.55 g/t gold from 58.0m;

– 6.0m at 4.29 g/t gold from 77.0m; and

– 5.0m at 2.48 g/t gold from 41.0m.

Coventry said these results continue to confirm additional parallel plunging higher-grade “shoots” of mineralisation are present immediately along strike to the northwest of the Cameron deposit.

The company is now highly confident it can increase the shallow resource base at the Cameron gold project, which would allow it the potential to develop a much larger open-pit than it considered possible before the current drilling commenced.

Resource Mining cuts Wowo Gap drilling costs

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THE DRILL SERGEANT: Perth-based minerals explorer Resource Mining Corporation has reduced drilling costs at its Wowo Gap nickel deposit, located 200 kilometres east of Port Moresby in Papua New Guinea by nearly 70 per cent.

Resource Mining is nearing the end of a 300 hole drill program at Wowo Gap that was designed to infill holes on a 200 metre by 200 metre hole spacing within a ten kilometre strike zone of known mineralisation towards the north of the project.

The drilling was also designed to test for extensions of mineralisation to the north and south-west.

”We have now just completed the most significant drilling program for this deposit since it was first explored in the 1950s and the results are very encouraging because the more holes we’ve drilled, the more mineralisation we have identified,” Resource Mining Corporation managing director Warwick Davies said in the company’s announcement to the ASX.

In the last 12 months drilling costs at Wowo Gap have come down from A$300 per metre to less than A$100 per metre.

The company has achieved the dramatic price slash through the use of an innovative custom made man-portable core drilling rig capable of much faster, higher quality and more cost effective drilling using a largely unskilled local workforce.

Without this very significant cost reduction RMC said it would not have been able to afford to complete the 300 hole program.

“The original drilling program planned for 200 infill holes was expanded to 240 then to 300 holes as new areas of mineralisation were identified to the north and south west and this 30 per cent increase in the overall program was completed efficiently with the outcome a testament to the commitment, training and ability of our local workforce,” Davies said.

The latest assay results received are from 50 holes, 35 of which intersected high grade nickel of a grade greater than one per cent nickel with some as high as 1.63 per cent nickel.

“To get seven out of ten holes with grades over one per cent nickel, particularly in areas where we expected to see a close-out of mineralisation, is outstanding,” Davies said.

Davies went on to add the results continue to lend the project to a low cost surface mining operation.

“The efficiency of our drilling program and slow progress by our independent geological consultant has meant a delay in our ability to release an updated resource estimate in July or August 2011 as planned and we will now just release one estimate in November of this year,” he continued.

“This means we’re suspending work on the resource update and will recommence when all assay results are in from the completed 300 drill hole program.”

Final core samples from the campaign are currently being flown to Lae in PNG for sample preparation and when assays have been completed the company said it would recommence the resource update.

High-grade satellite hits for Noble

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THE DRILL SERGEANT: West Africa-focused Noble Mineral Resources has received a handful of highgrade results from drilling at the Strauss-Walsh satellite deposit at its Bibiani gold project in Ghana.

Based on results received by the company so far for the Strauss-Walsh deposit, as well as the Aheman, Grasshopper and Big Mug deposits, Noble has set a resource target of a minimum of three years production to be sourced from these satellite deposits.

Noble is confident the Strauss and Walsh deposits, and the area between them, will provide the initial primary ore for the refurbished plant at Bibiani.

The company said the recent results from the Strauss and Walsh deposits, and the others, support its view that they will join to form one super pit.

“They will also be used to help calculate a maiden reserve estimate for the satellite deposits, which are completely excluded from the current estimate,” Noble Mineral Resources said in its ASX announcement.

“This figure will then form part of an upgraded inventory at Bibiani, where resources to the 13th level of 23 currently stand at 1.98 million ounces and include 790,000 ounces in reserves.”

Strauss sits northeast of Walsh with 400 metres between the existing pits. The total length from the north of Strauss to the south of Walsh is 1.35 kilometres.

The latest intersections to the south of Strauss include:

– 2 metres at 47.19 grams per tonne gold from 134 metres;

– 2m at 3.69 g/t gold from 86m;

– 2m at 28.68 g/t gold from 65m; and

– 1m at 21.6 g/t gold from 108m.

Drilling at Walsh returned hits including:

– 3m at 18.07g/t gold from 114m; and

– 3m at 4.15 g/t gold from 82m.

Noble said it considers the results to be important as they stem from drilling in four areas not previously considered prospective and are:

– Away from the main lodes to the south of Walsh past the main lode;

– Under the old Walsh pit to the north of the largest mineralised zone;

– Well to the north-east of Walsh in the “gap” area; and

– At the south end of the Strauss pit workings.

The deposits have so far been drilled to 180m from surface at Strauss and at Walsh, but only to 130m in the “gap” between the two pits.

“Walsh drilling is complete and most assays have been returned. Many of the composite sample submissions have also been returned for the ‘gap’,” Noble said.

“Drilling at Strauss will be completed shortly.

“In light of very encouraging results returned from the ‘gap’, a decision has been made to infill this area with sufficient drilling to provide full feasibility data densities.

“This will enable Noble to announce a resource that can be converted to reserve status with no further drilling.”

Adamus eyes visible Liberian gold

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THE BOURSE WHISPERER: Initial reconnaissance work carried out by Adamus Resources on its Bopulu mineral reconnaissance licence in Liberia has discovered large areas of noted alluvial mining and hardrock workings with visible gold.

Bopulu is one of three Mineral Reconnaissance Licences (MRLs) in Liberia, as well as the Mambo and Fasama licences, that were granted to Adamus in April.

Adamus has wasted little time to commence exploration on the MRLs and currently has a team of geologists, field technicians and local workers conducting a soil sampling program on Bopolu.

Sampling on the Mambo licence is due to commence immediately.

“This is an exciting development, as it confirms what we have believed for a long time – that Liberia has enormous potential as a second focus of exploration for Adamus,” Adamus Resources chief executive officer Mark Connelly said in the company’s announcement to the Australian Securities Exchange.

“With our Nzema gold project in Ghana in commercial production, we have been stepping up our exploration in the region, and we are now starting to see the results of this program.”

To enable it to commence fieldwork as soon as possible, Adamus has seconded a geologist to Liberia from its Nzema gold project in Ghana, while SEMS Consulting is assisting with logistics and support staff.

The main target area at the Bopolu MRL is a group of workings in the northwest portion of the licence that drain a ridge underlain by what the company considers to be a prospective unit of sheared iron formation, amphibole and quartzite.

Adamus is currently undertaking a series of soil sampling across the ridge and stream sediment sampling is also planned over the northwest portion of the licence.

There are numerous alluvial workings in the Mambo MRL area and meetings have been held with local mining agents and community representatives that have confirmed the location of noted previous mining activity, which will be the initial focus of the soil sampling program.

The Fasama MRL is the most northerly and remote of the three licences.

Reconnaissance work is planned in the next few weeks to locate and assess an area of activity near the town of Fasama.

Meetings have been held with Liberian government officials to discuss proposed work programs and progress on fieldwork.

Vital secures funding for Watershed

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THE BOURSE WHISPERER: Queensland-focused tungsten developer and West African gold explorer, Vital Metals has confirmed Japan Oil, Gas and Metals National Corporation (JOGMEC) as a Farm-in partner in the Watershed tungsten project in far north Queensland.

JOGMEC has provided a formal Notice of Participation in the Watershed project with commitment to fund $5.4 million in stages.

Vital Metals chief executive officer Mark Strizek said JOGMEC’s decision to provide the funding for additional exploration and the Bankable Feasibility Study had reinforced the company’s confidence in the project’s potential.

“This is a defining agreement for both the Watershed project and the company,” Strizek said in the company’s announcement to the Australian Securities Exchange.

“JOGMEC have put Watershed through a thorough due diligence process and it has passed all of their project benchmarks.

“We are extremely pleased to have attracted such a credible partner in JOGMEC and look forward to advancing the Watershed project.”

Strizek said Vital had been impressed by the capability and enthusiasm of the JOGMEC team during the due diligence process.

“We have received the green light with the Notice of Participation from JOGMEC and have agreed to a plan and　completed preliminary costing of the work required,” he said

“We will use the funding to complete the BFS　to realise the project’s value for Vital Shareholders.”

Vital considers Watershed to be a prospective tungsten project.

It has a JORC code compliant Indicated Resource of 15.3 million tonnes at 0.46 per cdent tungsten.

A Prefeasibility Study and environmental approvals are well advanced on the project.

“Importantly, tungsten prices are strong and market forecasts confirm our expectation that demand and prices will remain firm in the medium term, providing an excellent window of opportunity for Watershed’s development,” Strizek said.

JOGMEC will make the $5.4 million payment in a series of instalments over the Earn-In period, including an initial payment of $800,000 by 30 September 2011.

Ampella set for Konkera upgrade

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THE DRILL SERGEANT: Ampella Mining has struck high-grade gold mineralisation from first pass deep drilling program at its Batie West project in Burkina Faso, West Africa.

Ampella said the deep drilling program at Konkera North has potential to add a substantial increase to the current 2.2 million ounce JORC Code Compliant Konkera gold Resource (Indicated Resource of 22.5 Mt at 1.6 g/t gold for 1,182,600 ounces gold and Inferred Resource of 19.9 Mt at 1.6 g/t gold for 1,041,500 ounces gold).

The company has received assays from Konkera North for 16 out of 19 deep drill-holes for a total of 7,966.1m of drilling designed to test a 2,000m long strike of the current resource down to a depth of 400m.

Each hole intersected the targeted ore position at depth which included:

– 16 metres at 4.4 g/t gold and 8 metres at 6.5 g/t gold;

– 11m at 3.7 g/t gold and 4m at 7.3 g/t gold;

– 7m at 4.6 g/t gold, 5m at 5.8 g/t gold and 5m at 5.0 g/t gold; and

– 23m at 2.4 g/t gold and 11m at 2.0 g/t gold.

Assay results are still to be received from the three remaining deep drill holes.

The company said each of these drill holes has intersected zones of intense albitesericite-carbonate-pyrite alteration, which it considers to be associated with gold mineralisation contained in the existing Indicated and Inferred Resource.

“Ongoing infill drilling will be used to increase the confidence levels for new gold ounces added to this resource and could pull open-pit designs significantly below the current resource,” Ampella said in its ASX release.

“This first pass drilling will also provide valuable geological information which can be used to target the plunge of any of the previously intersected higher grade shoots of mineralisation that will be targeted to test the underground potential of the deposit.”

Ampella plans to complete in excess of 200,000m of diamond and reverse circulation drilling throughout 2011 as part of a $31 million exploration program.

This program will concentrate primarily on resource expansion at Konkera and resource identification at new regional targets across the Batie West project.

　

　

First ounces and revenues from Bullant

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Kalgoorlie Mining Company has confirmed delivery of 10,507 dry tonnes of ore from its Bullant gold mine with recovered gold of 1,241 ounces from what is the company’s first shipment of ore to Kanowna Belle.

This represents an average grade of 3.95 grams per tonne for the development ore at a provisional recovery of 93%, with future ore delivery grades expected to increase upon commencement of open stope mining.

At the contracted sale price gross proceeds to the company will be approximately $2.1 Million, before haulage and processing costs.

Under the terms of the Ore Purchase Agreement, Kalgoorlie Mining said a percentage of the provisional net proceeds will be paid to the company within 14 days.

“The balance will be calculated and settled upon the treatment of the gold ore through the Kanowna Belle gold processing facility following final determinations of grade and recoveries,” the company said in an announcement to the ASX.

“The delivery of the first gold ore and subsequent revenue generation is a watershed moment for the company as it strives to build a significant gold business based around Bullant in the north eastern goldfields of Western Australia.”

Kalgoorlie Mining said ore sales to Barrick are expected to continue monthly until the company has successfully commissioned its own gold treatment facility onsite capable of treating +500,000 tonnes per annum.

Further ore deliveries will be made in coming weeks to Kanowna Belle, with Bullant producing ore at approximately 700 tonnes per day.

NSL gets environmental nod

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THE BOURSE WHISPERER: India-focused iron ore company NSL Consolidated has presented draft Terms of Reference (TOR) to the Ministry of Environment and Forests in New Delhi for the Kurnool beneficiation project.

The TOR presentation and subsequent minor additions, is a milestone in the Environmental Clearance (EC) process for the beneficiation project as the TOR defines the environmental requirements of the project.

“The presentation to the Ministry of Environment and Forests New Delhi Expert Appraisal Committee is a significant step forward,” NSL Consolidated managing director Cedric Goode said in the company’s announcement to the Australian Securities Exchange.

“We now have a clear understanding of environmental boundaries in proceeding with the projects.”

According to the company submission of the TOR now makes all remaining EC steps procedural in nature, allowing NSL to proceed with developing the project under clear environmental boundaries.

In addition, NSL has received detailed engineering drawings and plant designs from the Shanghai Minggong Heavy Equipment Company, and is in the final stages of drafting purchase agreements and closing commercial discussions for long lead items from China, with installation work due by the end of the year.

“The Kurnool plant has the potential to lift our ROM iron ore grades to between 58-61 per cent iron from as low as 25 per cent to 27 per cent iron, and with good yield and recovery rates,” Goode said.

“Our trial mining has provided NSL with accurate cost estimates for all aspects of mining, crushing, screening and transport to port from Kurnool.

“It has very robust economics with cash costs of around US$57.22 per tonne compared to current spot prices for the beneficiated high grade material of between US$136 and US$163 per tonne.

“The plant has the capacity for annual throughput at Kurnool of 196,000 tonnes of concentrate, which would deliver a steady net cash flow of US$800,000 per month.”

NSL said its timetable for the US$2.3 million iron ore beneficiation plant project remains on schedule to commence production in the opening half of next year.

The beneficiation plant will be located at Kurnool in the south eastern Indian state of Andhra Pradesh close to NSL’s two iron ore mines at Kuja and Mangal, which are both subjects of advanced mine design and production schedule work.

“This project is on track,” Goode continued.

“We have moved into a nine month pipeline to complete final plant design, construction and commissioning, the latter’s first stage commencing by year’s end with a cash-back, based on modelled plant throughput, within 2-3 months post-commissioning.

“Final commissioning will deliver maiden revenue for NSL but also open additional revenue generating opportunities.”

The company said it plans to mount a series of cost reduction initiatives once final commissioning is underway, with particular focus on transport, export duties and beneficiation operating costs.

Tanami continues good news from Groundrush

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THE DRILL SERGEANT: Australian gold producer Tanami Gold has received more results from an ongoing Resource extensional drilling program at its 100%-owned Central Tanami project in the Northern Territory.

“Since drilling commenced in April 2011, the company has seen a consistent flow of outstanding results from the Groundrush drilling,” Tanami Gold managing director Graeme Sloan said in the company’s announcement to the Australian Securities Exchange.

“When you add both historic and our recent drilling, we have done little more than scratch the surface of the deposit.

“To date we have only tested an area approximately 700 metres along strike and just under 100 metres below the base of the existing pit, or approximately 250 metres to 300 metres below surface.”

According to Tanami Gold the Groundrush deposit consists of a main north plunging zone of mineralisation, two footwall zones of mineralisation similar in tenor to the main zone and at least three shallow dipping high grade zones of mineralisation.

The recent drilling has also confirmed for the company the emergence of a thinner zone of gold mineralisation near to or at the footwall contact between the host dolerite and the footwall sediment package.

Tanami has only tested less than half of the 1.5 kilometre pit length to date, most of which has been done to a relatively shallow depth.

However, the company is confident potential exists to increase Resources and for repeat zones of mineralisation at depth and along strike.

Tanami remains on schedule to provide an updated Resource Statement later this year to coincide with completion of the Central Tanami project Feasibility Study.

Recent assay results have returned gold intervals including:

– 18.0 metres at 8.0 grams per tonne gold from 289.9m;
 
– 10.1m at 9.1 g/t gold from 258.5m;

– 2.7m at 59.6 g/t gold from 183.7m;

– 4.9m at 6.0 g/t gold from 301.0m, (footwall lode);

– 0.4m at 220.0 g/t gold from 323.3m;

– 2.4m at 6.8 g/t gold from 325.0m;

– 8.8m at 2.5 g/t gold from 363.0m;

– 12.0m at 4.0 g/t gold from 251.4m;

– 0.7m at 50.7 g/t gold from 251.3;

– 5.3m at 3.9 g/t gold from 337.0m, (footwall lode); and

– 0.7m at 42.7 g/t gold from 209.3m.

“Given the extremely high success rate of drilling to date, multiple zones of mineralisation identified during this early phase of drilling, excellent gold recoveries including a very high gravity component, and the clear potential for this system to continue at depth and along strike, the Groundrush deposit has the potential to increase significantly and to underpin the company’s transition into the ranks of mid-tier gold producers,” Sloane said

Tanami has now completed the third phase of diamond drilling at Groundrush having drilled a total of 38 holes since April and a number of assays from this drilling still remain outstanding.

The company is currently planning the fourth phase of drilling and will have the program finalised when all outstanding assays from Groundrush are received and assessed.

Musgrave Minerals identifies new targets

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THE BOURSE WHISPERER: Recently-listed minerals exploration play Musgrave Minerals has identified a third focus area in the Musgrave Province, known as the Mt Woodroffe project, in the far north of South Australia.
 
The Mt Woodroffe project is situated on Musgrave Minerals’ wholly owned tenement, located approximately 115 kilometres west of the Stuart Highway and Adelaide to Darwin railway line.

Musgrave Minerals recently identified 10 new priority targets across after conducting a versatile time-domain electromagnetic or “VTEM” survey across part of its Mt Woodroffe project.

The company indicated that a number of the VTEM targets are located upstream of co-incident copper, nickel and platinum stream sediment anomalies, which it said is, “extremely encouraging”.

These are the same intrusive rocks that host BHP Billiton’s Nebo-Babel deposit in the West Musgrave.

“The identification of the VTEM targets in close proximity to the copper, nickel and platinum geochemistry anomalies is very positive,” Musgrave Minerals managing director Rob Waugh said in the company’s announcement to the Australian Securities Exchange.

“Metals commonly leach from enriched sources in the near surface environment and can accumulate in streams proximal to the source.

“Follow-up will occur in September/October to determine if the VTEM targets are the source of the copper, nickel and platinum anomalies.”

The newly identified area is the third project area to return new and exciting results from Musgrave Minerals’ initial exploration program, following positive results at Moorilyanna and Deering Hills.

The company is currently carrying out a program of diamond drilling of priority targets at Deering Hills, which it expects to receive results from shortly.

Musgrave has reconnaissance anomaly checking and rockchip sampling planned for September/October with ground electromagnetic (“EM”) surveys to follow-up priority targets.