Marmota Energy intersects high grade uranium

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Marmota Energy has announced a round of high-grade intersections ranging up to 5,538 parts per million uranium oxide.

The company received the intersections from a third phase of drilling on its Saffron and Bridget prospects located within its majority-owned Junction Dam uranium project.

Junction Dam is located less than an hour’s drive west of Broken Hill and just 10 kilometres from the Honeymoon uranium mine.

In its announcement to the Australian Securities Exchange Marmota said the latest results add to a stream of uranium intercepts at the two key prospects.

“Our latest downhole gamma readings from the third drill phase continue to indicate uranium mineralisation of potential economic significance,” Marmota Energy managing director Dom Calandro said.

“Importantly, the intersections are hosted in the Tertiary Eyre Formation and this is the same geological unit hosting the nearby Honeymoon uranium mine and the uranium-rich Beverley Four Mile project to the north of Junction Dam.

“The new drilling has defined and confirmed a very consistent zone of mineralisation, including a new four kilometre long zone of mineralisation at the Bridget prospect in addition to the existing 2 km strike length defined at Saffron.

“The program included successful test holes into a third prospect at Junction Dam, Yolanda, located immediately south of the Saffron prospect and “with a target zone four times the size of the Saffron prospect.”

Marmota said a number of the Yolanda test holes had intersected significant grades of uranium mineralisation.

The company considers the overall results from these holes confirms the continuation southward of the project’s main mineralised channel system.

“The presence of mineralisation at Yolanda offers substantial expansion potential south of the existing two kilometre km long Saffron prospect, discovered by Marmota late in 2009,” Calandro said.

“These are very indicative results which add significantly to the current defined zones of uranium mineralisation within the Yarramba palaeochannel within the overall Junction Dam precinct.

“From the results achieved to date, we believe there is significant potential for further extension to the Saffron prospect and the discovery of additional zones of uranium in both the Bridget and Yolanda prospects on Junction Dam.”

Marmota said it has now defined a zone of mineralisation that extends for approximately 15km at Junction Dam.


Drilling completed in the 2010 Phase 2 program confirmed an extension to the size of the Saffron prospect to approximately 2km, open to the north and south.

Geophysical exploration completed across the adjacent Bridget prospect to the north, defined an additional 4km long zone of potential which has been drill tested in the current Phase 3 program.

 

Black Range increases uranium resource 51 per cent

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THE BOURSE WHISPERER: Australian uranium play Black Range Minerals has completed a resource calculation for its combined Hansen/Taylor Ranch uranium project in Colorado, USA.

Earlier this year black Range executed agreements that provided it with the exclusive right to acquire 100% of the Hansen uranium deposit.

Hansen was discovered in 1977 and was fully permitted for mining in 1981, prior to the collapse of the global uranium market, which meant mining never eventuated.

More than 1,000 holes were drilled on the deposit however and three feasibility studies completed.

Black Range has used this information to calculate a JORC Code compliant resource estimate for the areas covered by recent agreements.

This company has integrated this resource estimate with previously calculated JORC compliant resources from the series of deposits on the immediately adjacent Taylor Ranch uranium project, in which it also holds a 100% interest in the mineral rights.

When applying a 0.025% cut-off grade, the JORC Code compliant indicated and inferred resource for the combined Hansen/Taylor Ranch uranium project comprises:

– 68.9 million tonnes at 0.060% uranium for 90.9 million pounds of uranium.

This represents a 51% increase in the number of pounds of uranium previously reported for the Taylor Ranch uranium project with 44% of this resource classified as “Indicated”.

When applying a 0.075% cut-off grade, the JORC Code compliant indicated and inferred resource for the combined project comprises:

– 16.6 Mt at 0.120% uranium for 43.8 million pounds of uranium

This represents a 58% increase in the number of pounds of uranium previously reported for the Taylor Ranch Uranium Project.

Black Range said this illustrates there to be a robust resource at the Hansen/Taylor Ranch uranium project with 46% of this resource, at a 0.075% cut-off grade, classified as “Indicated”.

“These statistics confirm that the combined Hansen/Taylor Ranch uranium project is one of the largest uranium projects within the USA – which is the largest consumer of uranium in the world,” Black Range Minerals said in its ASX announcement.

“With domestic mines within the USA producing less than 10% of the uranium consumed in the country on an annual basis, the development of such a large and strategic asset should be regarded highly.”

Black Range is continuing to advance the Hansen/Taylor Ranch feasibility and environmental studies as quickly as possible.

The company is currently undertaking a 10-12 hole (approximately 3,000 metre) drilling program at the Hansen to acquire additional geological, geotechnical, metallurgical and hydrological data required to update the historic feasibility studies.

Australian Uranium Conference 2011

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OUT AND ABOUT: Opening the Australian Uranium Conference in Fremantle Western Australian Minister of Mines and Petroleum Norman Moore told the crowd he wasn’t allowed to mention secession.

He did however advise those in attendance that the Western Australian Government has determined to implement a royalty rate of five per cent for uranium oxide concentrates.

Moore said the government had taken the decision after carrying out discussions with industry and that the government had considered carefully industry’s suggestions on the matter.

“Whilst the government has been asked to consider some relief from industry, we have decided to set a rate and contain it in legislation as the initial approach,” Moore said.

“The (Western Australian) Government is committed to the development of the uranium sector in Western Australia.

“This is part of our determination to ensure the continued, sustained development of the resources industry in this state.”

Moore also said that although he remained optimistic regarding the development of the resources sector in his state he said he felt the Federal Government’s proposed Minerals Resource Rent Tax threatens the future development of this sector Australia-wide

“We believe it will place an unfair burden on resources developments and affect the competiveness of WA as a destination for resources investment,” Moore said.

“We recognise only too well that there is gold, iron ore, uranium, coal and a variety of other minerals in other parts of the world.

“We have no monopoly on the supply of these products. It is a competitive world environment and we must remain competitive to attract international investment.

“We believe this tax is an impediment to that investment future.”

Moore went on to say the Western Australian government feared the MRRT could compromise its right to a fair return from royalties, “which are royalties based on the resources owned by the state government,” he said.

The WA government holds a genuine concern that the MRRT could be expanded from its current focus on iron ore and coal to include other commodities such as uranium.

Moore indicated recent comments by Greens Leader Bob Brown at the National Press Club, where he spoke of The Greens’ desire to expand the mining tax in its totality to also include uranium and gold, added fuel to the WA government’s concerns.

“His comments are, I think, clearly the ideals of a political party that would be quite content to see the destruction of the resources industry in this country,” Moore said.

Western Australian fears are not just contained to the MRRT with Moore taking aim at the Federal Government’s proposed Climate Change Plan, better known as the Carbon Tax.

“The tax poses a threat to all miners, not just coal, iron ore and the petroleum producers,” he said.

“We continue to wonder at the imperatives surrounding the decision to implement the tax; bearing in mind we were told there wasn’t going to be one.”

With Australia producing less than two per cent of the planet’s greenhouse emissions, Moore told audience that even if, as a country, we were able to eliminate every molecule of greenhouse gasses it would not make any difference to the world’s climate.

He pointed to what he described as, “The rise of Green activism and Green power in Australia”, as an issue the entire resources sector will need to address, not just uranium plays.

“It will become more and more important, in my view, for industry and its peak bodies to speak out on these issues that have significant consequential effects on this industry,” Moore said.

“It is very important to give the public the information they are eager to get to help them balance the public discussions on mining in Australia, particularly in respect to the Carbon Tax and uranium mining.

“The Western Australian government recognises that the resources sector is fundamental to our state and national economy

“In time the uranium sector will become a significant contributor to the state’s economy and will also be a contributor to the state’s revenues through the royalties it will pay.”

Millennium Minerals confirms pit expansion potential

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THE DRILL SERGEANT: East Pilbara-focused gold exploration company Millennium Minerals has received the results of RC drilling at its Nullagine gold project, at the Shearers deposit.

The Nullagine gold project is a 1.24 million ounce gold resource contained within seven deposit locations on granted mining leases.

The largest of these deposits is Golden Eagle located approximately 10 kilometres south of the township of Nullagine and containing 70% of the total Mineral Resource inventory.

Millennium Minerals recently completed a total of 43 Reverse Circulation holes for 2,707 metres at the Shearers deposit.

The drilling program was designed by Millennium to follow up RC drilling carried out earlier this year to further infill and test along strike extensions to mineralisation at Shearers.

Secondary drill targets were drilled in areas adjacent to the current main pit design that contains the bulk of the Shearers mineralisation.

Significant gold intercepts from the recent drilling include:

– 5 metres at 7.51 grams per tonne gold from 49m;

– 17m at 0.91 g/t gold from 65m;

– 4m at 3.60 g/t gold from 13m;

– 6m at 2.18 g/t Au from 35m;

– 8m at 1.42 g/t gold from 24m;

– 9m at 1.01 g/t gold from surface; and

– 11m at 0.72 g/t gold from 29m.

“These results, which follow the recent completion of a comprehensive 43‐hole drilling program, confirm that robust and shallow ore grade mineralisation continues for at least 140 metres to the south of the current proposed Shearers pit design limits,” Millennium Minerals chief executive officer Brian Rear said in the company’s ASX announcement.

“They also demonstrate new zones to the east and west of the main Shearers lode.”

Millennium said the latest results confirm robust and shallow potential ore grade mineralisation continues for at least 140 metres to the south of the current proposed Shearers pit design limits.

The company considers this mineralisation is very likely to be incorporated into an enlarged main pit, or new satellite pit designs once new Mineral Resource and Ore Reserve estimates are completed later this year.

“The results provide Millennium with strong impetus for additional follow‐up drilling, and, similar to our adjacent Otways deposit, demonstrates the potential for additional upside to be realised at Shearers,” Rear continued

“Encouragingly, Millennium’s ongoing drilling program has already resulted in a 25 per cent increase in the Nullagine gold project’s ore reserves and a subsequent 25 per cent increase in forecast gold production, as announced in January 2011.”

 

Signature Metals intersects along Ashanti Shear Zone

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THE DRILL SERGEANT: Australian-based minerals exploration company Signature Metals has received initial Aircore drilling results from the Kyekyewere prospect at the Konongo gold project in Ghana.

The Kyekyewere prospect is located along the Ashanti Shear Zone, which hosts significant gold deposits elsewhere in Ghana.

Aircore drilling at the Kyekyewere prospect provided a near-surface test of gold anomalies in historical soil sampling along a 3 kilometre section of the Ashanti Shear Zone.

Best results from the drilling include:

– 19 metres at 1.11 g/t gold from surface;

– 17m at 0.47 g/t gold from 21m;

– 14m at 0.47 g/t gold from 12m, including 6m at 0.92g/t gold; and

– 10m at 0.46 g/t gold from 8m.

The drill program consisted of 99 holes for 3,949m with an average depth of 40m.

“The majority of the significant intersections lie on or near the interpreted location of the Ashanti Shear Zone, demonstrating that this system is mineralised within the project area,” Signature Metals said in its ASX announcement.

“Due to the wide spaced nature of the drilling (between 500 meters – 1000 metres) these results should be considered “first pass” and the company is very encouraged at the tenor of results received, especially the number of intersections with widths over five metres.”

Signature Metals is confident these drilling results have identified key areas for it to carry out follow up drilling.

This will include infill drilling to provide a more comprehensive test of the system around the better results and drilling to test the strike extents of mineralisation, which is currently open along strike to the south and north.

Testing of other gold in soil anomalies along the interpreted location of the Ashanti Shear Zone is also planned.

“While no “bonanza” grade intersections were returned from this drill program, high-grade quartz veins are characteristic of Obuasi-style deposits and the presence of quartz veining associated with mineralised intervals provides encouragement that there may be a vein-hosted component to mineralisation in this prospect,” Signature Metals said.

“Evidence of shearing was noted in the logging of these drill holes confirming that the Ashanti Shear was intersected in the drill program.

“Despite the potential of this system to host significant mineralisation only limited work has been done to test the Ashanti Shear Zone within the Konongo gold project.

“The main mineralisation delineated to date, including the current JORC resources of 1.47 million ounces, are hosted on or adjacent to the Birimian –Tarkwaian contact which parallels the Ashanti Shear Zone.”

The company said it is still waiting on aircore drilling results from the Boabedroo West prospect as well as from RC drilling at Kwakawkaw and Kyereben.

Catalpa and Conquest score big institutional backing

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THE BOURSE WHISPERER: The proposed merger between two of Australia’s highly regarded junior gold producers Catalpa Resources and Conquest Mining has attracted the attention of some big hitting new investors to the newly formed shareholder registry.

Catalpa and Conquest announced an all scrip merger of equals and concurrent acquisition of Newcrest’s Cracow and Mt Rawdon gold mines in June this year that would create a leading growth-focused Australian gold company.

As part of the proposition, it was also announced that the merged group would undertake a pro-rata renounceable entitlement offer to raise approximately $150 million.

The rationale behind the raising was in order for the combined group to be suitably capitalised to realise the full development and exploration potential of its assets and achieve its growth ambitions.

The renounceable entitlement issue will take place shortly after the transaction is implemented so that shareholders of both Catalpa and Conquest can participate.

At the request of the two companies, Newcrest has agreed not to take up its entitlement of approximately $57million so the merged entity can be allowed to broaden its investor base.

The opening for new investors was not left open for long with Catalpa and Conquest announcing two leading global investors in gold equities have joined the party.

United Kingdom-based Blackrock Investment Management and Baker Steel Managed Funds have committed to subscribe for a total of $50 million of new shares.

This represents a healthy portion of the entitlement Newcrest agreed not to take up under the entitlement offer.

“Bruce and I have enjoyed widespread support for the merger since we announced the deal but a number of institutional investors are waiting to review the Scheme documentation and see greater certainty that the deal will be implemented before investing,” Conquest Mining executive chairman Jake Klein said in an announcement from the two companies.

“That being the case, it is especially pleasing to have this early support and endorsement of the deal from global resources investors of the calibre of Blackrock and Baker Steel.”

Catalpa Resources managing director Bruce McFadzean said his company had also been encouraged by the response the proposed merger had received.

“Like Conquest, we have also had very positive feedback from shareholders and investors alike about the industrial logic of the deal and the potential for the combined group to deliver long term sustainable growth in value,” McFadzean said.

“This commitment of investment represents a significant vote of confidence as we progress with this transaction and it is great to see two of the world’s most respected investors in gold equities being prepared to endorse the merits of this deal at such an early stage.”

The Scheme is expected to be implemented in October with the proposed equity raising to be launched shortly after.

Golden Gecko nominations received

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THE BOURSE WHISPERER: Western Australia’s Golden Gecko Awards for Environmental Excellence are celebrating their 20th anniversary this year.

The Golden Gecko is a piece of objet d’art that is highly prized by mining companies to demonstrate their environmental awareness.

The awards have again attracted a number of big name entries including BHP Billiton, Argyle Diamond Mine and Cliffs Asia Pacific Iron Ore.

In total 11 entries have been received from a range of industries, including gas infrastructure, mine site operations and seismic activities in the Kimberley, Pilbara, Goldfields and metropolitan regions.

“It’s great to see the State’s resources sector showcasing innovative contributions to environmental protection and management,” Mines and Petroleum Minister Norman Moore said.

“This year’s awards showcase a diverse range of projects from biodiversity action plans, fauna studies, minimum disturbance investigations and dust minimisation to catering management.

“The 2011 Golden Geckos is a particularly special event as we celebrate two decades of the advancement of environmental management in our resources sector.

“During the past 19 years, we have seen the achievements of winning entries go on to become standard industry practice, which raises the sector’s environmental performance.”

The awards are presented by the WA Department of Mines and Petroleum and recognise the demonstration of innovation, leadership and performance of environmental management by companies operating in the State’s resources sector and related services.

“This year’s nominated projects are to be congratulated on demonstrating exceptional standards of environmental management,” Moore said.

The winners of this year’s Golden Gecko awards will be announced at a ceremony in Perth on September 8.

See all the Golden Gecko 2011 nominations here

Carrick Gold encouraged by recent drilling

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THE DRILL SERGEANT: Western Australia-focused gold explorer Carrick Gold has released the first results from drilling being undertaken at the company’s Brilliant deposit at the Kurnalpi project located 90 kilometres from Kalgoorlie.

The Kurnalpi project comprises six deposits: Brilliant, Sparkle, Tinsel, Dazzle Discovery Hill and Half Way Hill.

Brilliant is the largest of the six deposits at the Kurnalpi project, and is the focus of the first round of drilling, comprising around 12,000 metres.

The current drilling builds on the total of 157,000m of drilling that Carrick has previously conducted at Kurnalpi over the 2.5 kilometres mineralised strike.

Carrick commenced drilling on the southern end of known mineralisation in June and will systematically progress northward.

Highlights from the first drilling traverse include:

– 8 metres at 2.68 grams per tonne gold, including 1m at 9.03g/t gold and 1m at 5.49g/t gold; and
 
– 15m at 1.5g/t gold, including 1m at 5.92g/t gold.

With the drill rig being on site Carrick has also been able to collect downhole survey results from previous drilling to assists it in validating an upcoming Resource estimate.

“These early results are what we expected,” Carrick Gold chief executive officer John McKinstry said in the company’s announcement to the Australian Securities Exchange.

“They confirm the existing interpretations, and further increase our confidence in the potential of the Brilliant deposit.

“Rather than drilling for results, we chose to start at one end and systematically drill the orebody.

“There will be a steady flow of results from the drilling, which will build the confidence level of the Resources for the upcoming Reserve estimates.”

Carrick has committed to delivering a revised Mineral Resource estimate for the Brilliant deposit by August.

Resources for three other deposits at Kurnalpi have been assigned lower priority as the company’s focus shifts to the Lindsays deposit.

Carrick expects revised estimates for Lindsays by mid-September and for Kalpini in early October.

 

Dragon Mining intercepts more Finnish gold

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THE DRILL SERGEANT: Scandinavia-focused ASX-listed Dragon Mining informed the market regarding results from the second phase of drilling from the Juomasuo gold deposit at the company’s Kuusamo gold project in northern Finland.

Analysis of the last three holes in the program returned promising gold intercepts, including 4.15m at 6.10 grams per tonne gold and 5.25m at 5.11 g/t gold.

The nine hole, 3,500 metre second phase of drilling was carried out between February and April and was designed to examine the strike and depth extensions of the known lodes in the southern portion of the Juomasuo deposit.

Dragon said the program had returned a series of encouraging intercepts, which include previously reported intersections of:

– 13.65m at 3.13 g/t gold;

– 9.95m at 3.81 g/t gold;

– 34.90m at 9.30 g/t gold;

– 3.55m at 10.39 g/t gold; and

– 7.30m at 8.18 g/t gold.

“The program has continued to confirm the continuity of the lodes at Juomasuo, whilst also highlighting the potential of the mineralised system below the existing resource base,” Dragon Mining said in its release to the Australian Securities Exchange.

“Multi-element analysis has also returned a number of strong cobalt intercepts and elevated levels of REE either in conjunction with gold mineralisation or separately, as well as the occurrence of sporadic elevated levels of copper and uranium.”

Dragon Mining said it will be set to resume the drilling program at the end of July following the requisite break for the northern summer.

Drilling will continue with two diamond core drill rigs recommencing activities on a 14 hole, 4,200 metre program targeting the strike and depth extensions of the known lodes in the northern portion of the deposit.

The company has already received, and reported, preliminary results of 8.95m at 11.42 g/t gold and 8.40m at 10.06 g/t gold from the first of the 11 holes already completed in this program.

A third rig will recommence drilling on the final 10 holes of a 21 hole, 2,100 metre program that has been designed to test the Hangaslampi deposit, 1,000 metres south of Juomasuo.

 

 

Cove to acquire Alcoyne projects

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THE BOURSE WHISPERER: Recently ASX-listed Cove Resources has entered into an agreement to acquire 100% of the Tally Ho and Mt Scott projects from Alcyone Resources.

Tally Ho is located approximately 50 kilometres southwest of Mackay on the central Queensland coast and just seven kilometres from the Peak Downs Highway, which heads to the port of Mackay.

Cove said the acquisition of the Tally Ho and Mt Scott projects provides it with exposure to silver, which it described as a commodity that complements gold as a strategic investment alternative.

“The Tally Ho project represents both an opportunity to expand the existing inferred resource and evaluate new targets in an under-explored large mineralised corridor,” Cove Resources said in its ASX announcement.

“The project has immediate drilling targets to test for possible extensions of the existing resource and other prospects identified through rock chip sampling.”

The Tally Ho Project has an historic Inferred Resource Estimate of 733,000 tonnes at 49 grams per tonne silver, 0.1% copper, 0.09% lead and 0.83% zinc, using a 40g/t silver equivalent cut-off-grade.

This Resource Estimate was reported to the ASX by Alcoyne Resources’ previous incarnation Macmin Silver in 2008 based on metal prices at July that year.

So far Cove has not been able to independently verify the previously published resource figures.

The company has proposed a drilling program for the Tally Ho project with a view to updating the resource using current metal prices and collecting technical data to potentially increase the size and upgrade the resource category.

Cove said that it anticipates drilling will commence once all approvals have been received and a suitable rig sourced.

The acquisition cost will be:

– The issue of shares to Alcyone Resources to the value of $ 50,000 based on the 30 day VWAP of Cove shares prior to the ASX announcement of the Agreement and payable on execution of the agreement.

– The issue of shares to Alcyone Resources to the value of $150,000, based on the 30 day VWAP of Cove shares prior to the ASX announcement of the extension, upon the extension of the Tally Ho tenements for a period of not less than one year.

– Upon securing the extension Cove Resources will take over all current and ongoing environmental liabilities relating to the tenements up to an amount of $78,000.

– The acquisition is subject to approval by the Minister of Queensland Department of Employment, Economic Development and Innovation, for the transfer of the tenements.