THE DRILL SERGEANT: YTC Resources continues to receive encouraging copper results from an ongoing drilling program at the Nymagee copper project (YTC-90%) in the Cobar Basin, New South Wales.

The results of the second round of drilling has arrived a shallow drill program the company had designed to evaluate shallow copper mineralisation in detail in order to complete an estimation of a shallow copper resource at Nymagee.

The drilling has encouraged YTC to consider the project’s potential for the establishment of an open-pit copper operation prior to developing the higher grade underground operation.

According to YTC the latest results highlight:
 
– Repeated broad intervals of strong copper mineralisation of 0.5 per cent to 3 per cent copper at shallow depths;

– Strong oxide-supergene copper enrichment with individual assays to greater than 20% copper; and

– Zones of shallow gold enrichment including 2 metres at 3.47grams per tonne gold Au from 5 metres.

“These are very strong results and look to have established the northern zone as a very attractive open pit mining proposition,” YTC chief executive officer Rimas Kairaitis said in the company’s announcement to the Australian Securities Exchange.

“YTC is continuing with the aggressive drilling program on the shallow zone with strong expectations for further success.”

The drilling program is being carried out to test the shallow copper mineralisation at Nymagee and has so far been successful in extending the known zones of copper mineralisation.

YTC has received results from 14 RC holes and 1 diamond hole, which the company said confirm the continuity and thickness of mineralisation.

Results from the shallow drilling program include:

– 10m at 6.7% copper, and 13g/t silver from 15m;

– 10m at 4.3% copper, 16g/t silver and 0.27g/t gold from 102m;

– 17m at 2.1% copper, 12g/t silver from 149m; and

– 31m at 1.0% copper from 72m.

YTC has also completed a second deep diamond drill hole beneath the historic Nymagee mine.

The hole passed approximately 100m beneath the previously drilled hole.

Visual logging of the drill core by YTC estimated the hole to have intersected a broad zone, of approximately 100m, of copper mineralisation greater than 0.5% copper from around 450m down hole.

YTC said it is encouraged by the width and persistence of copper mineralisation it has observed to date within the deep drilling at Nymagee, however it also said it still does not fully understand the controls on the high-grade lodes.

The deep drilling program is scheduled to continue for the next few months, after which the company expects to have gained a stronger understanding of the scale and extent of the Nymagee mineralisation at depth.

A third deep hole is now underway at approximately 250m depth testing approximately 50m north of the first deep hole.

 

When a junior explorer locates one project that delivers an outstanding result and rapidly advances beyond initial expectations it could be considered lucky.

When that same company is able to locate another project with potential to do the same it should be considered very good at what it is doing.

Overland Resources acquired the Yukon base metal project in 2007 as an advanced stage exploration project.

At the time, however, it didn’t realise just how advanced the project was.

A thorough examination of historical data revealed a mineral deposit with an Inferred Resource of around five million tonnes at good grades and excellent potential to increase in size.

Overland went from a junior company with an advanced-stage exploration play to one with a serious development opportunity.

“Since then we have advanced the Yukon base metal project to the point where, early next year, we will be applying for mine permitting,” Overland Resources managing director Hugh Bresser told The Inside Story.

“It is now a case of working through the feasibility studies, clarifying  capital and operating cost estimates, collecting all the  environmental base line data and traditional knowledge, compiling it and then moving into a mine permitting phase.”

In its formative years of existence any junior exploration company will spend a great deal of its time, effort, money and resources just looking to drill a quality discovery.

Because of the work previously carried out on the Yukon project prior to its acquisition, Overland managed to avoid the high-risk and expensive exploration phase and was practically able to move it straight into development.

“By good planning, or good luck, we have managed to cut that timeline down significantly and all of our money has gone into development costs or drill-out work,” Bresser said.

“That’s been a huge bonus as it has allowed us to really focus on developing our skill sets and our Board structure so that everything is now targeted towards mine development and company growth.”

Overland originally secured a 90 per cent interest in mineral claims covering more than 60 square kilometres within the Selwyn Basin, located in Yukon Territory, Canada. The land package included the high-grade Andrew zinc deposit.

Overland has increased its ground position recently completing a claim staking program, which resulted in the expansion to its land holding to over 260sqkm.

The Yukon base metal project now comprises three distinct project areas along a major interpreted fault corridor.

The original central block is collectively now known as the Selous project area.

It includes the Andrew, Darcy and Darin zinc deposits, the latter two discovered by Overland in the last three years, as well as the Myschka, Pinnacle and Lad prospects.

The south-eastern area, comprising the claims recently staked over and around the Riddell prospect, is now referred to as the Riddell project area.

This area is known to host outcropping massive sulphide mineralisation and Overland is already working to define drill targets it expects to test later this year.

The company also secured claims over a new early stage target area to the west of the central blocks, called the Junction project that it believes is highly prospective for SEDEX style base metal mineralisation.

The Junction project caught Overland’s attention due to such attributes as:

– It contains a highly prospective geological sequence, with the same lithologies that host known SEDEX deposits in the Selwyn Basin;

– It is close to a deep seated structure; and

– It contains anomalous government regional stream geochemistry results.

Overland intends carrying out a first pass mapping and stream geochemical program at Junction later this year to evaluate the potential for the area to host SEDEX type mineralisation.

Overland has undertaken the technical, economic and environmental components of a feasibility study into the development of the Selous project, which it is working towards submission of a mine permitting proposal to the executive committee of Yukon Environment and Socio-economic Assessment Board.

The company expects the permitting process to take between 12 and 18 months with construction commencing shortly after mine permits are issued.

With the Selous project well advanced and moving towards mine permitting, Overland realised that once the permitting process is completed it would be faced with about a two year period of low activity.

“It’s going to be two years in mine permitting then we come back with a mine permit and then we’re looking at about another two years in construction,” Bresser said.

“So, right now we are probably around four to five years from production.

“Bearing that in mind we recognised the need to have – for the company to grow and for it to be strong – a portfolio of ongoing high quality projects.”

Overland’s project portfolio expanded once again when the company secured an exclusive option to acquire a 100% interest in 22 Crown Granted claims, covering 782 hectares, that comprise the Anyox copper project in northern British Columbia.

These claims encompass and include the former Hidden Creek copper mine, which was operated between 1914 and 1935 by Granby Mining, Smelting and Power Company.

During this period 21.8 million tonnes of ore was mined at an average grade of 1.57% copper, 0.17 grams per tonne gold and 9.5 grams per tonne silver.

“We had been looking for something to bring into the fold for quite a while,” Bresser said.

“Our underlying rule of thumb was that it had to be as good as, if not better, than what we already had, or at least hold the potential to match what we already had.”

Cominco (now Teck) acquired the project in 1936, shortly after mining ceased and retained ownership until 1990.

Cominco carried out sporadic exploration on the greater Anyox project area including EM and IP geophysical surveys, geochemical and geological mapping and more than 90 drill holes for approximately 21,000 metres.

Mineralisation at the Anyox copper project occurs in eight distinct massive sulphide bodies within a surrounding vein stockwork containing disseminated sulphides.

A significant amount of high-grade mineralisation has also been reported to remain in place at the Hidden Creek Mine.

Overland considers a good amount of this and the surrounding lower grade mineralisation may be amenable to open pit mining.

Other targets of significant exploration potential keep revealing themselves elsewhere on the project with mineralisation being identified on any number of other prospects.

These include North Hidden Creek showing, located 300m north of the former mine, where Cominco reported an intersection of 6.1m at 2.5% copper, 1.7g/t gold and 99.4 g/t silver in drilling in 1982.

“Moving our exploration team between the Selous project and Hidden Creek fits our model perfectly,” Bresser said.

“This is just such a hand in glove scenario where we are able to roll straight onto this project.

“Our confidence level that something worthwhile is at Anyox is high; we believe there is something there that the company will be able to do something with it.”

“If everything goes the way the world is supposed to go, we will end up with one project coming into production with another moving into permitting.

“We will then be a company with two very solid assets, both of which are moving forward with one funding the other.

“Suddenly you go from being an exploration company to one that is a truly emerging mid-tier production company.”

 Overland Resources (ASX:OVR)
…The Short Story

HEAD OFFICE
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5 Centro Avenue
Subiaco, WA, 6008

Ph: +61 8 9226 5566
Fax: +61 8 9226 2027

Email: info@overlandresources.com
Web: www.overlandresources.com

DIRECTORS
Michael Haynes, Hugh Bresser, Anthony Polglase, Gibson Pierce, Sias Els

MAJOR SHAREHOLDERS
Macquarie Bank 16.2%
Glencore 11.1%
EIM Capital Management 10.6%

 

THE DRILL SERGEANT: Toronto and Australian-listed company PMI Gold Corporation has reported some positive drilling results from an ongoing in- fill and resource extension drilling program being undertaken at the Nkran deposit.

The Nkran deposit is part of the company’s 100 per cent-owned Obotan gold project in Ghana, West Africa, where PMI is currently undertaking a Pre-Feasibility Study.

“Work is progressing according to schedule on the Pre-Feasibility Study,” PMI Gold Corporation managing director Collin Ellison said in the company’s announcement to the Australian Securities Exchange.

“These latest drilling results continue to highlight the potential to grow the resource inventory at Obotan.

“PMI’s understanding of the deposit and, in particular, the geological controls on the mineralisation is aiding our targeting in the development of resource extensions.”

The Obotan gold project comprises four known deposits – the larger Nkran deposit and the smaller satellite deposits at Abore, Adubiaso and Asuadai.

PMI has also received encouraging results from the ‘greenfield’ satellite Asuadai deposit, where in-fill and down-dip extension drilling has confirmed broad zones of gold mineralisation which remain open at depth.

The current resource drilling program at Obotan Project has been designed to both upgrade PMI’s confidence in the resources and to increase the resources.

Results have been received from three holes from Nkran and four from Asuadai.

Nkran deposit drill results include several high-grade intersections approximately 150 metres below the base of the previously mined open pit:

– 29.0 metres at 4.27 grams per tonne gold from 466 metres, including 15.0 metres at 5.89 grams per tonne gold from 480 metres;

– 7.0m at 11.96g/t gold from 331m, including 2.0m at 40.88g/t gold from 336m; and

– 10.0m at 15.04g/t gold from 345m, including 2.0m at 66.68g/t gold from 352m.

The first Asuadai drill results of the current campaign included:

– 27.0m at 1.36g/t gold from 77m, including 2.0m at 4.34g/t gold from 80m; and

– 23.0m at 1.63g/t gold from 76m, including 1.0m at 18.25g/t gold from 80m.

PMI said the current drilling program is focused on defining potential resources for initial open-pit mining and ultimately underground mining down the plunge of the deposit.

A new resource estimate is currently scheduled for completion at the end of the September 2011 Quarter.

The company said this will underpin current Pre-Feasibility Study, which is planned for completion at the end of the year.

THE DRILL SERGEANT: Discovery Metals has upgraded the Mineral Resources at its Zeta deposit by nine million tonnes to 44.1 million tonnes, an increase of 25 per cent.

The Zeta deposit, combined with the Plutus and Petra deposits, form the Mineral Resources base for Discovery’s 100% owned Boseto copper project, located in north western Botswana.

“This upgrade of the Zeta Mineral Resources is another important step towards the completion of the Definitive Feasibility Study for development of an underground mine at Zeta and further increases confidence in the
Mineral Resources planned for open pit mining, which is expected to commence later this year,” Discovery Metals managing director Brad Simpson said in the company’s announcement to the Australian Securities Exchange.

The Zeta Mineral Resources update was calculated using the results from 54 infill drill holes and three holes drilled by the company in 2009, which intersected mineralisation at depths of approximately 600m below surface.

The Zeta Mineral Resources now comprise:

Measured Mineral Resources of 4.6 million tonnes at 1.6 per cent copper and 23.5 grams per tonne silver;

Indicated Mineral Resources of 12.4Mt at 1.5% copper and 26.1g/t silver; and

Inferred Mineral Resources of 27.1Mt at 1.2% copper and 20.0g/t silver; for

TOTAL MINERAL RESOURCES of 44.1Mt at 1.3% copper and 22.1g/t silver.

All Mineral Resources are reported at a cut-off grade of 0.6% copper.

According to Discovery Metals the Measured and Indicated Mineral Resources at Zeta have now increased by 56%.

The areas classified as Measured and Indicated, now extend down dip from what the company has previously reported, and now extend below the base of its currently planned open-pit and into the area the company has earmarked for underground mining operations.

“The previous Zeta underground Inferred Mineral Resources reported in conjunction with the underground scoping study results in March 2010 were 25 million tonnes at 1.4 per cent copper and 23.1 grams per tonne silver at a 0.6 per cent copper cut-off grade,” Discovery Metals said.

“This upgrade of the Zeta Mineral Resources has resulted in categorization of Measured and Indicated underground mineral resources of 12.0 million tonnes at 1.5 per cent copper and 26.9 grams per tonne silver and increased the total underground mineral resources to 31.0 million tonnes at 1.4 per cent copper and 25.3 grams per tonne silver at a 0.6 per cent copper cut-off grade.”

Discovery is now using the results of Zeta Mineral Resources re-estimation to progress the Definitive Feasibility Study for the development of an underground mine at Zeta.

This study is now planned for completion late in December 2011.

The company has no additional drilling planned at depth in the Zeta deposit for the remainder of the year.

Further drilling is anticipated upon completion of the Definitive Feasibility Study and development of detailed mine plans.