THE DRILL SERGEANT: Drilling at the 100% owned Borborema gold project of Brazil-focused Crusader Resources has continued to return pleasing results for the company.

“We are really pleased to report the results today which continue to build the picture of a major gold project at Borborema,” Crusader resources managing director Rob Smakman said in the company’s announcement to the ASX.

“These results will help to upgrade the classification as well as add to the current 1.86 million ounce mineral resource.

“Encouragement at depth in the higher-grade central zone and  also deeper in the northern and southern zones is giving our technical team confidence these results will help Crusader deliver a further resource update later in 2011.”

The company has reported results from 26 RC holes and 28 diamond holes, which have been carried out on target areas that included several deeper holes below the southern and northern extensions of the Borborema project area.

The company said it had been encouraged by results received from the southern zone.

These included results achieved adjacent to the central zone including:

– 10 metres at 8.66 grams per tonne gold from 151m; and

– 14m at 2.19 g/t gold from 185m.

In the northern zone, better results included:

– 11m at 1.54 g/t gold from 92m; and

– 4m at 1.92 g/t Au from 90m.

Crusader said the central zone continued to return consistently broad mineralised results and remains the company’s preferred target area.

Results from the central zone include:

– 6m at 7.83 g/t gold from 146m;

– 29m at 2.06 g/t gold from 157m; and

– 9m at 3.52 g/t gold from 66m.

The drilling campaign is continuing with three diamond rigs drilling targeting down dip extensions in the higher-grade central zone.

Crusader said this program will be the last of the holes to be included in the resource update which is due in the second half of 2011.

The company said it is also continuing on a Pre-feasibility study, with results also expected in coming months.

THE DRILL SERGEANT: Diversified Perth-based exploration play Desert Energy has completed a second RC drilling campaign on iron ore targets at its Camel Hills Joint Venture project located in the central mid-west region of Western Australia.

Under the terms of the Joint Venture agreement, Desert Energy can earn a 51% interest in the Camel Hills project from Aurora Minerals by sole funding the first $3.8 million of exploration expenditure.

Desert can elect to continue sole funding to earn an additional 19% interest in the project, for a total 70% interest.

The drilling targets were generated following the company’s maiden drilling campaign that was completed in December 2010.

The targets were also generated from detailed aero-magnetic surveys, prospect scale mapping and sampling, and ground based magnetic and gravity surveys.

A total of Twenty-one holes were drilled in the latest round, which was completed in July.

Due to the reconnaissance nature of the program most targets received only one or two holes.

However, Desert Energy was still able to record several thick intersections of magnetite iron, reporting a best result of 60 metres at 33 per cent iron.

Samples from the drilling campaign have been submitted for metallurgical test work to determine magnetite recoveries.

“The results indicate that several of the targets are worthy of more detailed drilling to potentially generate resources along with the T21 target drilled reported on previously,” Desert Energy said in its announcement to the Australian Securities Exchange.

“A number of other targets warrant drilling but due to accessibility and permitting requirements were not include in this campaign.”

Desert Energy has also been focusing its attention lately on the recently acquired Dalgety copper-gold tenement.

Dalgety covers approximately 12 kilometres of the regional Deadman Fault, which hosts a number of zones of anomalous gold and copper mineralisation.

The company has been encouraged by Gascoyne Resources’ announcement of a gold resource directly southwest of the Dalgety tenement.

Desert Energy conducted reconnaissance rock chip sampling over the tenements in June.

“Desert Energy regards the results as highly significant and warrant immediate follow-up,” the company said.

“More detailed prospecting and mapping is underway with the aim of generating specific targets for drilling.”

THE BOURSE WHISPERER: Aquila Resources has been given the environmental thumbs up by the Environmental Protection Authority for the West Pilbara iron ore project (Aquila 50%) in the Pilbara region of Western Australia.

The EPA has recommended environmental approval for the mine and rail facilities for the project.

“Having made a substantial investment in the approvals and engineering process, it is rewarding to achieve a significant project milestone for Aquila’s shareholders,” Aquila Resources executive chairman Tony Poli said in the company’s ASX announcement.

“We look forward to working constructively with the WA Government and other stakeholders to deliver a strategically important port and rail solution to unlock the western Pilbara for a range of resources companies.”

The first stage of the project entails a 30 million tonnes per annum mining operation based on Reserves located south of Pannawonica and a rail network connecting the mine with a new port facility to be constructed at Anketell Point, west of Cape Lambert.

“Having started the approvals process more than three years ago, we are mindful of delivering this project in a timely manner,” Poli said.

“We are on track to commence construction of the Anketell Port in the second quarter of 2012 and this timeline has been welcomed by a number of other mining companies in the Pilbara.”

The EPA has recommended to the Western Australian Minister for the Environment that the project be approved, to develop the current eight iron ore deposits and the 285 kilometre heavy-haulage railway from the mining area to the proposed new port at Anketell Point, constituting the Stage 1 development of the project.

The recommendation allows for the full exploitation of the known Reserves at those ore bodies, comprising the first 15 years of the project, and enables implementation of the mine plan in accordance with the project schedule.

A number of conditions are to be imposed and the EPA report is subject to a two week appeal period.

Aquila said it is continuing to work with the State Government on the design of the proposed multi-user Anketell Port and environmental approval of the Public Environmental Review for the development of Anketell Port remains scheduled for Q4 2011.

In its recent quarterly report, Aquila said work has been undertaken towards securing a significant debt facility to help fund its share of the project’s development costs.

A Definitive Feasibility Study is currently being finalised and is due for release in the next few weeks.

THE BOURSE WHISPERER: Australia-based exploration and mining company East Coast Minerals has entered into a conditional agreement through its major shareholder Exchange Minerals to acquire an 80% shareholding in the ECM Lithium Group.

ECM Lithium Group subsidiary company, ECM Lithium AT GmbH has subsequently entered into a conditional contract with third party vendor Kärntner Montanindustrie GmbH for the acquisition of mining and exploration licenses in the mining area known as the Austrian Lithium Project.

According to East Coast Minerals’ announcement to the Australian Securities Exchange the Austrian lithium project currently has an Inferred JORC Resource of 18 million tonnes grading 1.6% Lithium Oxide.

“Compiling all of the documentation associated with this acquisition has been an enormous task, reflecting the complex cross border legal and accounting issues associated with an acquisition of this size,” East Coast Minerals chairman Nigel Little said in the company’s ASX announcement.

“We look forward with great excitement to finalising the agreement and developing the possibilities that arise from this wonderful opportunity that our major shareholder Exchange Minerals has facilitated and funded”.

A major condition of the acquisition agreement has already been met by Exchange Minerals with the payment of an initial instalment of €3.7 million.

This payment is in addition to the €550,000 the company had already paid for the exclusivity period.

Other key conditions for the contract between Kärntner and ECM Lithium have also been fulfilled, which means ECM Lithium is now awaiting the completion of the approval of the transfer of the exploration and mining licenses by the Austrian mining department known as Montanbehörde.

East Coast Minerals said it has completed technical and legal due diligence reports in relation to the acquisition of the project under the conditional agreements with Exchange Minerals for the acquisition of a total of 80% of the shares in ECM Lithium Group.

The agreements with Exchange Minerals are subject to the following key conditions:

– East Coast Minerals shareholder approval; and

– Completion of the transaction with KMI and the approval of the transfer of the exploration and mining licenses.

THE DRILL SERGEANT: Mongolia-focused copper exploration play Voyager Resources has told the market it has made a high-grade copper discovery.

The company announced initial assay results it has received from the first three RC drill holes on the Cughur discovery at its KM copper porphyry project.

The KM Copper gold project is located in the Edrene Island Arc Terrain, which is one of a number of tectonic terrains that extend across the Gobi and southern regions of Mongolia.

Some of these have been proven to host a number of mineralised porphyry systems, including Ivanhoe’s giant Oyu Tolgoi deposit.

Voyager has only carried out a limited amount of exploration over the KM project to date, however the company said it has been highly encouraging by the results it has received so far as they support its belief that KM has the potential to host a significant copper porphyry system.

“The Cughur copper discovery is a fantastic result for Voyager shareholders and rates as some of the best copper drilling results in Mongolia since the discovery of the giant Oyu Tolgoi copper gold deposits,” Voyager Resources said in its announcement to the ASX.

“KM is an exceptional porphyry copper project that has the potential to be a company making asset for Voyager as the company progresses its exploration efforts.”

Drilling at the Cughur discovery has returned highly encouraging results, with all three, 80 metre deep, RC holes ending in high grade copper mineralisation.

The best results from the drilling include:

– 66 metres at 1.48 per cent copper and 5.4 grams per tonne silver from 14 metres to end of hole;

– 50m at 3.51% copper and 10.8 g/t silver from 30m to end of hole; and

– 10m at 4.06% copper and 16.2 g/t silver from 70m to end of hole;

Two of the completed RC holes have recently been extended by diamond core drilling.

Copper mineralisation of varying intensity from these holes has been geologically logged as:

– Strong chalcocite to 86.5 metres with weaker chalcocite and moderate chalcopyrite to 156m depth; and

– Strong chalcocite to 84.0 metres with weaker chalcocite and moderate chalcopyrite to 118m depth.

Voyager currently has three drilling rigs operating on the KM project, with many other targets being drill tested.

To date 40 RC holes and three diamond tail extensions have been completed over four separate prospects for over 4,000 metres of drilling.

Voyager said a number of these drill holes are intersecting porphyry style copper mineralisation over broad intervals.

The company will continue drilling to focus on the Cughur prospect area where it has already intersected mineralised quartz tourmaline breccias greater than 100 metres.

Voyager is well placed to continue the drilling programs with $9.67 million in cash as reported at the end of the June quarter.