THE CONFERENCE CALLER: Leading the announcement charge on Day Two of Diggers & Dealers, Ram Resources (ASX: RMR) reported the completion of reconnaissance aircore drilling the company’s Fraser Range nickel project in Western Australia.

The aim of the program was to further refine six high-priority targets.

Ram said the drilling had confirmed the presence of mafic rock units within the Yardilla structure.

The company intends using the results to refine exploration targets as it prepares the next phase of deeper RC drilling, which will test a number of previously identified electro-magnetic (EM) conductors.

Fraser Range – MLEM targets and drill collars. Source: Company announcement

“The drilling supported the geophysics – structurally the ultra mafics were there and the conductors sit within the contact zone, so we are pleased about that,” Ram Resources managing director Bill Guy told The Roadhouse.

According to the copany’s ASX announcement the aircore drilling confirmed mafic lithology in targets MLEML2/1, MLEML2/2, MLEML4/1, MLEM L5/1 and MLEM L6/1.

These targets have been upgraded for deeper drilling. No mafic units were intercepted at MLEM L14/1.

“Target 2 is probably a separate issue as it is a folded mafic complex, whereas targets 4, 5 and 6, we think, will actually end up being extensions of each other,” Guy explained.

Guy said that at this stage it is still too early to tell, however, the company is anticipating the drilling to confirm targets 4, 5 and 6 to be continuous.

Ram’s upcoming, deeper drilling program at the Fraser Range project will test up to 5 conductors the company has identified to depths of 122 to 200 metres.

The company said the magnetic interpretation of the Fraser Range South project had given it further confidence in its prospectivity.

Ram will undertake further geochemical and geophysical analysis over the coming months to refine what it considers to be targets that are emerging as being very promising for drilling.

Email: info@ramresources.com.au

Website: www.ramresources.com.au

THE CONFERENCE CALLER: Mutiny Gold (ASX: MYG) took the opportunity of being at Diggers & Dealers to announce its new management regime has completed an internal Mine Operators Review of the company’s Deflector gold, copper and silver project, located within the Murchison Region of Western Australia.

The company said the review was undertaken on details from its 2013 Definitive Feasibility Study (DFS), from which it considers to have produced a much simpler plan for developing the ore body.

The review has taken place over the past couple of months, during which time the new management team has completely reviewed the Deflector project, beginning with the geology and the rock type and conditions.

The review has determined the mine as a shallow, narrow vein, high grade underground mine in excellent rock conditions, which the management considers to be straight forward for experienced Western Australian underground miners.

A purpose-built processing facility will be constructed for the Deflector mine based on an optimal underground production rate of 380,000 tonnes per annum.

The underground mine now equates to 80 per cent of the project’s value with the size of the open pit reduced in line with a natural change-over point at 80m depth on the Western Lode based on rock type, rock conditions and expected thickness.

Deflector open pit and underground isometric. Source: Company announcement

This review work has generated a new reserve of 1.8 million tonnes at 5.6 grams per tonne gold (322,000 ounces), 6.3g/t silver (360,000 ounces) and 0.9 per cent copper (16,000 tonnes).

The company has also completed a detailed technical review of the exploration strategy associated with its Gullewa gold project, from which it says it has identified a logical order to exploration targets.

Mutiny Gold said its immediate focus will be on the seven kilometre long Deflector Corridor, which it explained is untested and under-explored outside of the upper parts of the Deflector ore body.

Email: mlg@mutinygold.com.au

Website: www.mutinygold.com.au

THE CONFERENCE CALLER: Rox Resources (ASX: RXL) will be presenting on the final day of Diggers & Dealers, however that didn’t deter the company from releasing news.

The company reported results from a recent ground EM survey it carried out at the Bonya project (RXL earning up to 70%) located 350 kilometres east of Alice Springs in the Northern Territory.

The Bonya project sits adjacent to the Jervois copper deposit of KGL Resources (ASX: KGL), which boasts a Resource of 13.5 million tonnes at 1.3 per cent copper, 25 grams per tonne silver.

The ground EM survey looked at three previously identified VTEM anomalies.

Rox said the survey produced results very similar to the VTEM with similar responses and interpreted conductive plates.

Bonya VTEM showing interpreted geology (black lines) and fold axis (red
line). Targets BVTEM_01, 02, 04 and 05 lie on the JV tenement, while
target BVTEM_03 lies on Rox’s wholly-owned tenement. Source: Company
announcement

The company said one of the anomalies (BVTEM_04) has associated copper carbonate (malachite) staining on the outcropping rocks and a copper-in-soil anomaly, which it has interpreted to suggest the presence of copper mineralisation below.

Synthesising geology from surface mapping, aerial photo interpretation, magnetics and EM data demonstrate the targets to be quite clearly related to a fold structure with the old Bonya mine located in the nose of the fold (possibly along the fold axis) and the EM targets lie along strike along the flanks of the fold.

An RC drilling program is scheduled to commence in late August to test these targets.

Rox indicated that should it have some success with this program other targets generated by the VTEM survey can be prioritised for drill testing.

Email: admin@roxresources.com.au

Website: www.roxresources.com.au

Share price movements during Diggers & Dealers Day One

CONFERENCE CALLER: There was a lot of love in the Big Tent on Day one at Diggers & Dealers, which seemed to flow over to the boards of the ASX.

Plenty of companies had days of positive movement, pretty much on the strength of releasing their conference presentations.

Perhaps it is because such releases are usually chock full of good
news and blue sky investors can’t resist the temptation of colour and
movement and throw money at them.

Atlas Iron was one such company, releasing two presentations and rewarded with a jump of 6 cents.

Interestingly enough Gryphon Minerals released results of a Feasibility
Study, which the company said had confirmed the robustness of its
Banfora gold project in Burkina Faso.

Not robust enough for investors, or perhaps it should have included a few more graphs in its presentation.

No movement – up or down, so a win of sorts. 

The story of the day was the new Gruyere deposit Resource released by Gold Road Resources (ASX: GOR), which was rewarded with a healthy rise of 4.5 cents.

This will be worth watching over the next couple of days to see whether investors do have the stamina to stay with a story longer than 24 hours or just take the profit and run.

As far as The Roadhouse’s pretend portfolio stands after Day One – we’re up $1073 since last Thursday’s closing.

Disclaimer: The above is intended as a guide only. The Roadhouse accepts no responsibility for investments made from this advice, successful or otherwise.

The Roadhouse makes no representation or warranty with respect to the accuracy, completeness or currency of the content. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian financial services licensee before making investment decisions.

THE CONFERENCE CALLER: As usual the Diggers & Dealers Conference was opened by charismatic chairman Barry Eldridge.

Eldridge informed the gathered throng this is to be his last year in the position and though he may be vacating big chair he let all know he wasn’t going quietly.

Governments, particularly in recent years, have borne the brunt of Eldridge’s vexation and he didn’t disappoint those of us who enjoy a good bit of bureaucratic bashing.

Barry Eldrige delivers his final Diggers & Dealers opening address

“In the past three years, part of my opening comments have been to add our voice to the broader resources community in defending our industries (sic) contribution to the Australian economy and to express dismay at the constant attacks we experienced by the previous Government,” he told a full opening morning auditorium.

“We have a new Government and twelve months in, we, I think are encouraged by the representations that Australia is again open for business and that he resources sector no longer seems to dominate the headlines accused of raping and pillaging the Nation’s economic resources.”

Although his feelings for past Governments is fairly plain, Eldridge ensured he delivered a message to the incumbent administration warning them that they too are on notice.

More than ever Australia needs a robust resources industry,” he said.

“While we have a more friendly Government, we do need to continue to hold this Government to account.”

He pointed out the current Government has been hamstrung in its attempts to implement change quickly by the actions of the minor political parties, which he described to be, “narrow minded politicians who remain committed to acting as though the resources industry is an enemy of Australia”, and who should, “just get out of the way and let us get on with developing our Nation’s resource assets.”

Another administration to cop an Eldridge backhander was the Western Australia State Liberal Government, which has made noises in regards to raising the state’s gold royalty payments.

“”We do have a continuing situation where governments do continue to consider that the resources sector is an untapped source of revenue that can be used to fill Government coffers when money is needed,” he observed.

“”I am not sure when they will get the message; margins are tight in this industry.

“It is an industry that requires constant capital injections to maintain productivity, exploration expenditures to replenish mined resources and substantial fluctuations in commodity prices and currency rates mean that this sector needs to be allowed to operate without additional burdens such as extra taxes.”

Eldridge ensured he closed on a positive note – pointing out some of the achievements the industry has been able to celebrate highlighting the opening of the Tropicana gold mine as an example.

“You will hear 46 successful investment stories over the next three days,” he promised his audience.

The optimistic feeling streaming through the big tent this morning gives some hope Eldridges prediction could be on the money.

Diggers & Dealers 2014 has been opened – let the games begin.