Gold Road excited by Central Bore

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THE DRILL SERGEANT: The Central Bore project of Gold Road Resources continues to act contrarily to its name by continuing to produce exciting results from an ongoing RC and RAB drilling program.

 Central Bore, along with the Justinian and Hann gold projects, is located on the company’s Yamarna Belt in Western Australia.

Gold Road said results from the Justinian prospect, located 200 metres east of Central Bore, suggest that Justinian is a parallel gold system to the 800m long Central Bore trend.

Justinian is currently 500m long, remains open to the north and the south, as well as at depth.

Further, gold mineralisation has been detected between Central Bore and Justinian, possibly indicating the existence of additional mineralised trends.

RC drilling at Justinian intercepted a number of gold values including.

3 metres at 7.24 grams per tonne gold from 120 metres, including 1 metre at 19.2 grams per tonne gold;

2 metres at 6.32 g/t gold from 87 metres, including 1 metre at 11.4 g/t gold;

2 metres at 5.88 g/t gold from 81 metres, including 1 metre at 10.8 g/t gold; and

3 metres at 3.97 g/t gold from 65 metres, including 1 metre at 7.94 g/t gold.

The company has also received results from an additional 7 RC holes at Central Bore.

These include:

1 metre at 29 g/t gold from 333 metres; and

1 metre at 3.81 g/t gold from 275 metres.

Assay results from RAB drilling carried out around the Justinian and Central Bore North & South areas also returned encouraging values including:

1 metre at 7.32 g/t gold from 22 metres between Justinian and Central Bore;

1 metre at 1.47 g/t gold from 23 metres;

8 metres at 1.18 g/t gold from 24 metres at Central Bore South; and

4 metres at 0.5 g/t gold from 4 metres at Central Bore Justinian North.

Hann – RC drilling
Nine additional RC holes were also completed at Hann. Results from this drilling included:

8 metres at 3.05 g/t gold from 44 metres, including 4 metres at 5.4 g/t gold.

Gold Road said the purpose of the RC drilling program at Hann is to test a southern 2.4 kilometre long gold anomaly in the soils.

Gold Road has currently completed 67,000 metres out of the anticipated 150,000 metre program.

Bannerman receives environmental go-ahead

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THE BOURSE WHISPERER: Perth-based Bannerman Resources has received an Environmental Clearance from the Namibian Ministry of Environment and Tourism for the linear infrastructure proposed to service the company’s Etango uranium project.

The Environmental Clearance gives the company approval to develop a linear infrastructure corridor from the existing nearby public road to the project site, including road, rail, power lines, telecommunications and a water pipeline.

The environmental approval follows Bannerman’s submission of an Environmental Impact Assessment on these infrastructure aspects.

Under Namibian law and environmental regulations, the Environmental Clearance for linear infrastructure requires that all stakeholders be properly consulted and their consent be taken into account prior to the commencement of construction activities.

“The grant of the Environmental Clearance for the linear infrastructure associated with the Etango uranium project, following an extensive documentation and public consultation program, demonstrates the ongoing support of the Namibian Government for the Etango project,” Bannerman Resources chief executive officer Len Jubber said in the company’s announcement to the Australian Securities Exchange.

“We thank the Namibian Government for this latest endorsement of our impact studies, community consultation and environmental practices.”

In 2010 Bannerman received an Environmental Clearance for development of the Etango project based on the configuration set out in a 2009 Environmental and Social Impact Assessment.

An updated ESIA and accompanying Environmental and Social Management Plan, incorporating the now-expanded resource area and site layout refinements, is scheduled to be lodged for public comment next quarter.

The next stage will see it submitted to the Namibian Ministry of Environment and Tourism for approval.

Once it has received an updated environmental clearance for development of the Etango project, Bannerman will lodge supplementary information with the Ministry of Mines and Energy providing further support of the existing Etango mining licence application.

GBM Resources upgrades Milo

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THE DRILL SERGEANT: Australian copper-gold play GBM Resources has received further encouraging results from diamond drilling at the Milo prospect, which is part of the company’s Brightlands copper-gold project in North-West Queensland.

GBM said the latest results support its growing confidence in the potential of prospect as an iron-oxide-copper-gold project.

“These additional strong drillhole intersections, the positive initial metallurgical results and the discovery of significant levels of rare earth mineralisation, strongly underline the potential for future development of the exciting polymetallic Milo IOCG Deposit, GBM Resources executive chairman Peter Thompson said in the company’s announcement to the Australian Securities Exchange.

“We are only early in the discovery phase with just over 7,500 metres drilled to date on the two kilometre mineralized system.

“Like all IOCG systems the key is tonnes and metal recovery and the Milo prospect is starting to meet those criteria.”

GBM has recently completed a nine hole diamond drilling program and results for the sulphide zones in all, except for one have now been received.

According to GBM a number of the holes intersected multiple zones of mineralisation, with three in particular returning further significant intersections.

Seven of the nine holes completed intersected zones of polymetallic copper.

GBM said the zone of cupriferous polymetallic mineralisation remains open to the north and south.

This, the company said, is evidence stronger mineralisation is plunging to the north giving it confidence its initial Exploration Target of between 30 million to 80 million tonnes of mineralised material, averaging between 0.8% and 1.2% copper equivalent, at Milo has significant potential to be expanded.

The company is currently carrying out metallurgical test work. Initial results are indicating copper occurs largely as course chalcopyrite grains, which GBM said provides good concentration through flotation.

“Preliminary results have also provided recoveries of between 75% and 80% to a concentrate grading from 24% to 27% copper,” GBM said.

“Petrography and initial concentrates also indicate that molybdenum occurs largely as discrete molybdenite grains.

“This is considered a positive indication for ultimate recovery levels.”

The company is also undertaking testwork covering the suite of other metals that include gold, silver, molybdenum, cobalt and uranium.

Northern Star drilling highlights Peake potential

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THE DRILL SERGEANT: Emerging gold producer and exploration company Northern Star Resources has completed the first round of drilling at its Ashburton gold project in Western Australia.

Northern Star has told the market the drilling has returned a series of high-grade results, which it said highlights the potential for it to become the company’s second major production project.

The drilling was undertaken at the Peake prospect, which is one of Northern Star’s high-priority targets at the Ashburton project where a resource of 668,000-ounces has already has been outlined.

The Ashburton project is within 200 kilometre trucking distance of Northern Star’s Paulsens gold mine.

Northern Star recently announced it is on track to better its calendar 2011 forecasts for Paulsens of 75,000 ounces in production and $40 million in surplus cash.

The Peake prospect is an open pit that was mined in 2001 and produced approximately 89,000 tonnes at 6.54 grams per tonne gold for 18,700 ounces.

The mined ore body has a strike length of 600 metres with true width of two metres to four metres and is hosted within fine to medium-grained sediments.

Before Northern Star’s recent drilling campaign, Peake had undergone very little historic drilling although some limited deeper historical drilling had returned high gold grades with results including 3 metres at 12.9g/t and 6 metres at 10.3g/t.

The latest drilling campaign resulted in a total of 5,209m of RC drilling carried out at Peake.

The results received included highlights of:

– 5 metres at 8.3 grams per tonne gold, including 3 metres at 11.3 grams per tonne gold;

– 11m at 5.2 g/t gold, including 5m at 8.4 g/t gold;

– 8m at 6.5 g/t gold, including 4m at 10.1 g/t gold;

– 8m at 5.3 g/t gold, including 4m at 9.3 g/t gold;

– 6m at 7.2 g/t gold;

– 3m at 7.8 g/t gold; and

– 4m at 6.1 g/t gold.

Northern Star said it considers these intercepts have significantly increased the prospectivity of the Peake prospect and proves mineralisation is continuous along strike.

The company is still waiting on further assays from this first round of drilling, but said it is confident potential exists for further extensions to the mineralisation.

In the company’s announcement to the ASX, Northern Star managing director Bill Beament said the Peake prospect is a prime example of the potential for mineralisation to continue beneath and adjacent to previously mined pits at the Ashburton gold project.

“The Peake prospect offers potential to deliver both oxide and high grade underground sulphide resources which will add to the overall mineral inventory for the company,” Beament said.

“In-under 12 months Northern Star has delivered two corporate transactions, generated substantial profits and is now growing the business organically through successful exploration.”

Terramin Australia adds to Menninnie project

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Menninnie Metals, a wholly-owned subsidiary of Adelaide-based base metal producer Terramin Australia has concluded a transaction with Minotaur Operations, a wholly owned subsidiary of Minotaur Metals.

The transaction will result in Menninnie owning 100% of a prospective group of tenements along trend from the Menninnie Dam lead-zinc deposits.

Terramin will be the ultimate winner from the agreement between the two subsidiary companies as it will acquire a 100% interest of the Nonning tenement, immediately north of the Menninnie Dam project on South Australia’s Eyre Peninsula.

The Nonning tenement is part of the group of four tenements that make up the Menninnie zinc project covering an area of 1,609 square kilometres.

Exploration work already carried out by Terramin has identified several prospects with similar geophysical signatures in close proximity.

The company has been acquiring tenements to the north it considers to be prospective for substantial lead-zinc deposits.

The Nonning tenement was previously subject to an earn-in arrangement between Terramin and Minotaur whereby Terramin could earn an interest of up to 70%.

Menninnie Dam currently boasts an Inferred Resource of 7.7 million tonnes at 5.7% lead and zinc and 27 grams per tonne silver, which is associated with an induced polarisation anomaly.

“The successful exploration on the Menninnie Dam tenement has shown that the mineralisation trends north on to Nonning and further,” Terramin Australia managing director Dr Kevin Moriarty said in the company’s release to the Australian Securities Exchange.

“This purchase will result in Terramin owning 100% of all the tenements in the Menninnie zinc project and positions the whole project to attract a substantial joint venture partner.”

Completion of the transaction is subject to approval by the responsible Minister.

In a separate ASX announcement Minotaur Exploration said although the tenements are prospective for base and precious metals, particularly lead-zinc, they do not, at this stage, fit the company’s current copper-gold exploration focus.

Mining industry supports Bicycle charity

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A number of mining industry-related companies are getting behind Bicycles for Humanity.

Bicycles for Humanity, or B4H in modern technology speak, describes itself as, “A world-wide, grass roots, volunteer run organisation focused on simple, sustainable empowerment in the developing world”.

It does this in the most elementary and practical way – by sending used donated bikes from the developed world to partner organisations in countries in need.

The group is currently on a bike hunt, in particular for mountain and hybrid bikes that are gathering dust in sheds and backyards across Perth.

The donated bikes will be shipped in a container 10,000 kilometres to the African country of Namibia.

“The finance for this first container to Namibia has been provided by Perth resources company, Bannerman Resources,” Bicycles for Humanity West Australian chairman David Tucker said.

“Our other sponsors have contributed to the costs of bike collection and ensuring the local Bicycle Empowerment Centre has the resources it requires.”

Tucker said B4H was indebted to Bannerman Resources as well as its other mining industry related sponsors, which include:

Komatsu;

Deep Yellow;

Amec Minproc;

Langer Heinrich Uranium;

Stone Ridge Ventures;

Bright Generation;

Genalysis Intertek;

Toro Energy;

Brains Trust;

Minter Ellison;

Digirock; and

Intierra.

Bannerman Resources chief executive officer Len Jubber said his company was very pleased to support the B4H WA inaugural shipment of bikes to Namibia.

“We are working very closely with communities in the Erongo Region of Namibia and consider the development of Bicycle Empowerment Centres as a very positive contribution to the local community,” Jubber said.

Once these unloved and un-used machines arrive in Namibia they will be given a new lease of life and be used to make a significant difference to the daily lives of hundreds of people.
 
This is the first time that Perth people have had the opportunity to be involved with this life changing program and B4H is hoping the local population don’t hold back in coming forward.

“We are very excited to get our first bike collection in Perth underway”, Tucker said.

“By donating that old bike sitting in the shed or hanging around gathering dust, people can help break the cycle of poverty by providing sustainable transport for one person.

“A bike allows someone to travel twice as far, twice as fast and to carry four times the load.

“In the countries in which B4H works, a bike can mean access to education, health care, fresh water, economic opportunity and community.”

B4H Perth is the third Bicycles for Humanity chapter founded in Australia and this first shipment of bikes will create a new Bicycle Empowerment Centre in Namibia.

The Centre uses the shipping container as a bike shop. Local people are then trained to run the bike shop, maintain bikes and create a sustainable business providing critical transport to the community.

Profits from the bike shop also support local health initiatives.

B4H Perth has established bike collection points at Swanview Aquatic Centre car park, off Gray Drive, Midvale, or Challenge Stadium car park, off Stephenson Ave, Mt Claremont.

The collection points will be open between 9am and 3pm Saturday, 30th July.

First in line to donate a bike was local sporting legend and B4H champion Peter Matera.


David Tucker of Bicycles for Humanity, WA with former All-Australian AFL stars, Phil Matera, Peter Matera & Rob Wiley donating bikes that will help break the cycle of poverty in a community in Namibia

“This is a fantastic program that really helps people to help themselves,” Matera said.

“I am thrilled to be involved and would encourage everyone with a spare bike hanging around to bring it along to one of the collection points.”
 
Hybrid or geared mountain bikes are the best for the conditions in Africa, although a limited number of kids and road bikes will also be collected for shipping.

Anyone who misses the collection can still be part of B4H through the program’s partner, Perth’s leading bike stores TBE.

The TBE shops in Nedlands, Osborne Park, Belmont and Willetton will collect bikes during store hours.

 

Cleveland hits encouraging drill results

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THE DRILL SERGEANT: Recent drilling carried out by Perth-based South America-focused Cleveland Mining Company at its O Capitão gold project has discovered gold‐bearing mineralisation located less than 10 kilometres from the company’s Premier gold project in Brazil.

The drilling delineated a 250 metre strike‐length of multiple, stacked, mineralised zones with variable down‐hole widths ranging from 0.4m to 16.50m per zone.

Highlights include:

– 11 metres at 1.01 grams per tonne gold from 51 metres to 62 metres;

– 4.4m at 3.55 g/t gold from 91m to 95.40m;

– 7.57m at 1.99 g/t gold from 79.8m to 87.37m;

– 16.5m at 1.16 g/t gold from 46.4m to 62.9m; and

– 7.57m at 1.99 g/t gold from 79.8m to 87.37m.

Cleveland carried out the drilling to evaluate mineralisation potential north of the Garimpo Pit and to follow‐up mineralised intercepts from a previous drilling program at the Donna Maria Garimpo, where gold‐bearing mineralisation was intercepted in four of six holes drilled.

Cleveland Mining’s Joint Venture partner in the Premier, Guarinhos and Baú projects Edifica Participações Ltda, has exercised a purchase option for 50% of O Capitão.

Edifica will pay Cleveland approximately one million dollars, which represents 50% of all costs incurred on the project to date with the final figure still to be determined, to exercise the option.

The South American company will also contribute equally to all costs going forward.

Cleveland said the new joint venture will provide it with  the option to process ore from both Premier and O Capitão at the same facility should mining proceed at O Capitão.

“Since Cleveland acquired O Capitão 18 months ago, we have identified high‐grade extensions of the old Garimpeiro pit, resolved a formerly disputed ownership status, and have now discovered shallow and potentially significant gold‐bearing mineralisation,” Cleveland Mining Company managing director David Mendelawitz said in the company’s ASX announcement.

“I am delighted that we can expand our Joint Venture with Edifica to include O Capitão.

“Our understanding of mining and exploration fits perfectly with their ability to source projects, to understand the local operating environment, and provide connections and local credibility within Brazil.

“To have O Capitão as part of the Premier Joint Venture, not only allows us to share the exploration and development risks, but also means that we can gain the economies of scale from a centralised plant, thus reducing the barriers to turning mineralisation at O Capitão into an economic resource.”

Cleveland has already begun the process of transferring the O Capitão tenements into the Joint Venture entity.

Soon after this has been completed the company intends lodging an application to transfer the exploration lease into a mining lease.

Black Fire checks out DRC copper prospect

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THE BOURSE WHISPERER: Perth-based diversified exploration play Black Fire Minerals has entered into an exclusive due diligence and option agreement with Canadian private company, Rift Valley Minerals and private Democratic Republic of Congo company, TSM Entreprise.

The agreement is for the acquisition of up to 54% effective equity in the Kangeshi copper-silver project located in the Democratic Republic of Congo.

The project is located in the southern part of the DRC, some 190 kilometres north of Lubumbashi in the copper mining province of Katanga.

Black Fire said its interest in the Kangeshi project was raised by results of very broadly spaced diamond drilling undertaken by international mining company Vale in 2008.

A total of nine holes were drilled along five kilometres of strike and intersected significant copper-silver mineralisation up to 1.3km down dip (but only up to 180m down-hole) from surface outcrops.

The best true width drill intersections from this historic drilling included:

– 11 metres at 1.10% copper and 23.6 grams per tonne silver;

– 10.5m at 1.20% copper and 22.6g/t silver;

– 4.7m at 1.42% copper and 37.2g/t silver; and

– 9.85m at 0.85% copper and 16.3g/t silver.

“We are very excited about the potential of the Kangeshi project to deliver a large tonnage, mid- grade copper and silver deposit in the highly copper prospective and very active mining province of Katanga, where a number of other ASX and TSX listed companies are also having success,” Black Fire Minerals acting chairman Anthony Baillieu said in the company’s announcement to the Australian Securities Exchange.

“We look forward to working with our partners at Rift Valley Minerals and TSM to fast track drilling programs with the aim of outlining a maiden mineral resource within the next 6-8 months”.

Based on the available data and a recent field trip to the project, Black Fire has placed an initial exploration target for open pitable mineralisation at the Kangeshi prospect at 25-35 million tonnes at 0.8% to 1.2% copper and 15g/t to 20g/t silver.

 

Avanco Resources defines new Brazilian anomaly

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THE BOURSE WHISPERER: Brazil-focused copper exploration play Avanco Resources has been active in the nickel-platinum sphere having defined a third nickel-copper anomaly has at its Conceição project.

The latest soil survey carried out by Avanco at Conceição has continued the company’s runoff identification of priority drill targets with the most recent being a nickel-copper anomaly extending for 1.5km over a prospective magmatic maficultramafic intrusion.

Avanco is confident this new discovery supports a case for drill testing of at least three nickel prospects at Conceição.

“Conceição shows clear and increasing evidence of a cluster of magmatic intrusions considered highly prospective for the discovery of nickel sulphides,” Avanco Resources said in its announcement to the Australian Securities Exchange.

“This is substantiated by the presence of visible nickel-copper sulphides in outcrops and the results of rock-chip analysis as reported previously.”

Conceição is just one of Avanco’s nickel assets that is currently undergoing exploration.

At its Touro nickel project, Avanco has previously defined a region it regards as highly prospective for new nickel sulphide discoveries.

Limited scout drilling carried out on Touro returned values of up to 0.38% nickel with anomalous platinum group metals, which Avanco considers to confirm Touro to be a fertile nickel host.

The company is currently awaiting the approval of a new exploration license, after which it will begin a new phase of exploration.

These will most likely start by running geophysics before the company commences to drill test the footwall contact along the Touro sill.

Avanco has also recently discovered historic data covering it Serra Verde project, which has drawn its attention to the potential occurrence of nickel-PGM mineralisation on the northeast of the license.

“Soil sampling and auger drilling undertaken by former explorers indicates the existence of mafic-ultramafic rocks below surface cover which have been delineated as being coincident with a nickel-PGM anomalism,” Avanco said.

Results reported from historical auger drilling at Serra Verde include:

– 8 metres at 4000 parts per million nickel, 600 parts per million copper, 40 parts per billion platinum and palladium;

– 4m at 2600ppm nickel, 1100ppm copper, 48ppb platinum and palladium; and

– 7m at 700ppm nickel, 3800ppm copper, 199ppb platinum and palladium.

The company said it considers these results to be highly anomalous for nickel-PGMs and are being validated by current field work.

Although the company’s main focus is on copper and its nickel projects represent a non-core activity Avanco said the fact they are demonstrating to be highly prospective they should not be ignored.

The company said it is investigating these options in order to further advance the nickel prospects without compromising its commitment to copper.

Centaurus provides Brazil map for Atlas

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THE BOURSE WHISPERER: Leading Pilbara iron ore producer Atlas Iron has added an international outlook to its portfolio by agreeing to take a strategic 19.9% stake in Brazil-focused Centaurus Metals.

The deal is part of what the companies have referred to as, “a wide-ranging strategic alliance that includes technical, development and product marketing support”.

Under the Agreement, Atlas will subscribe $18.7 million to Centaurus through a share placement comprising 212 million shares at 8.8 cents per share.

The deal will boost Centaurus’ coffers to over $25 million and will allow it to accelerate development of its domestic and export iron ore projects in south-eastern Brazil.

“Entering into a strategic alliance with a well-respected and proven iron ore producer such as Atlas is a very positive step as we move to become an iron ore producer over the next two years,” Centaurus Metlas managing director Darren Gordon said in a joint ASX announcement with Atlas.

“The decision by Atlas to take up a strategic shareholding in Centaurus reflects the fact that it sees a lot of parallels between our business today and its business several years ago.

“Centaurus has an excellent suite of projects that have the potential to generate very significant cash flows for a modest capital investment, and Atlas has clearly recognised this potential.

“Having Atlas as a major shareholder positions Centaurus for its transition to an iron ore producer, from both our Export and Domestic projects in Brazil, and with Atlas’ support we hope to replicate the sort of growth and success that Atlas has been able to achieve.”

Atlas Iron managing director David Flanagan said his company was pleased to have secured an investment in Centaurus.

The future development of the Centaurus Brazilian iron ore assets delivers Atlas exposure to the emerging iron ore business in Brazil, which is one of the world’s major iron ore provinces.

“The investment provides us with great exposure to a very well managed business that is poised to make the progression from iron ore explorer and developer to a producer,” Flanagan said in the announcement.

“As part of our strategic alliance, we will provide technical advice and assistance to help Centaurus realise the full potential of its asset base and unlock substantial cash flows over the next few years.”

Centaurus intends to use the funds raised from the Placement for the following purposes:
 
– The completion of a Feasibility Study and approval processes at the Jambreiro iron ore project;

– Accelerated exploration and development of the export-focused Serra Do Lontra project;

– Securing port capacity to assist in the development of the planned future export business;

– Ongoing exploration and review of new project opportunities to support the company’s planned iron ore export business from Brazil; and

– General working capital.