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THE DAILY ROADHOUSE

 

Alliance Resources Continues to Define Weednanna Gold

THE DRILL SERGEANT: Alliance Resources (ASX: AGS) announced results from a recent phase of RC drilling completed at the company’s Weednanna gold deposit on the Eyre Peninsula of South Australia.

Metalicity Planning Next Kookynie Drilling Campaign

THE DRILL SERGEANT: Metalicity (ASX: MCT) has planning underway for the commencement of the next drilling campaign to be carried out at the company’s Kookynie gold project in the Goldfields region of Western Australia.

Elixir Energy Set to Start Mongolian Drilling

THE BOWSER: Elixir Energy (ASX: EXR) is set to commence its 2019 drilling campaign at the company’s 100 per cent-owned Nomgon IX coal-bed methane (CBM) production sharing contract (PSC) located in the South of Mongolia, just near the Chinese border.

Matsa Resources Kicks Off Red October Diamond Drilling

THE DRILL SERGEANT: Matsa Resources (ASX: MAT) has commenced an underground drilling program at the company’s Red October gold mine in the Eastern Goldfields of Western Australia.

Hillgrove Resources Scores Healthy Drill Results From Kanmantoo Deposit

THE DRILL SERGEANT: Hillgrove Resources (ASX: HGO) provided an update on progress of drilling underway at the company’s Kanmantoo Underground copper mine development in South Australia.

Metro Mining Scores Healthy September Shipping Numbers

THE DRILL SERGEANT: Metro Mining (ASX: MMI) had just as good a September as the Richmond Football Club by hitting production levels across all areas at the company’s Bauxite Hills project at the strongest levels since operations commenced.

 

Alliance Resources Continues to Define Weednanna Gold

THE DRILL SERGEANT: Alliance Resources (ASX: AGS) announced results from a recent phase of RC drilling completed at the company’s Weednanna gold deposit on the Eyre Peninsula of South Australia.

Alliance Resources drilled 33 RC holes during July and August 2019 for 5,211 metres at the Weednanna deposit in a bid to continue to define the extensions of gold mineralisation at Shoots 5E, 7 and 8, infill gold mineralisation at Shoot 9/11, and test for Shoot 1 style gold mineralisation at the 3DIP target.

The company’s objective with this drilling program was to extend known gold mineralisation in the southern area of the deposit.

“The results from this drilling program have continued to grow the size of the Weednanna deposit outside of the Maiden Mineral Resource area,” Alliance Resources said in its ASX announcement.

Drilling at Shoot 5E continued to extend mineralisation with intersections of:

19WDRC064
3 metres at 3.4 grams per tonne gold from 118m (Shoot 5E HW);

19WDRC065
9m at 3g/t gold from 147m and 3m at 4g/t gold from 175m (Shoots 5E and 5E FW); and

19WDRC067
6m at 16.6g/t gold from 107m, including 4m at 24.1g/t gold from 108m (Shoot 5E).

Further definition of Shoot 9/11 was achieved with an intersection of:

19WDRC075
3m at 3.8g/t gold from 127m.

The Shoot 7 target area was defined on 50 metre spaced traverses for infill drilling, encountering a result of:

19WDRC086
13m at 1.2g/t gold from 97m.

Drilling was undertaken on the unnamed 3D induced polarisation (3DIP) geophysical target to follow-up a previous intersection of 10m at 1.6g/t gold from 92m in 19WDRC046 hosted in Archaean granite.

The latest drilling hit:

19WDRC087
6m at 3.4g/t gold from 54m, including 1m at 12.1g/t gold from 58m.

Alliance said this gold is associated with strong chlorite-sericite alteration and disseminated arsenopyrite similar to mineralisation at Shoot 1.

In 2018, Alliance announced a maiden Mineral Resources estimate for the Weednanna gold deposit of 1.097 million tonnes at 5.1 grams per tonne gold for 181,000 ounces gold (classified 49% Indicated and 51% Inferred) (2018MRE).

Since the 2018MRE Alliance has drilled a further 139 RC holes and 5 diamond holes, for 21,542 metres, with the objective of growing and increasing geological confidence in the Weednanna Mineral Resource.

 

Email: info@alliancereources.com.au

Web: www.allianceresources.com.au

 

Alliance Resources Delivers New Weednanna Drilling Results

THE DRILL SERGEANT: Alliance Resources (ASX: AGS) announced results of diamond drilling recently undertaken at the company’s Weednanna gold deposit on the Eyre Peninsula of South Australia.

Alliance Resources completed five HQ sized diamond holes (19WDDH001-005) during January and February 2019 to provide metallurgical samples for the deposit’s fresh sulphide rock domains of Shoots 1, 2, 4, and 5.

Highlights of the results, included:

19WDDH001
39.1 metres at 3.51 grams per tonne gold from 46.9m, including 8.45m at 8.52g/t gold from 74.3m;

19WDDH005
9.4m at 12.45g/t gold from 97.3m, including 3.3m at 32.47g/t gold from 103.4m; and

19WDDH003
2.1m at 23.87g/t gold from 100.9m.

“The diamond drilling results have been provided to Alliance’s metallurgical consultants who are currently planning future metallurgical testwork to optimise the processing flowsheet and design of a gold processing facility for the Weednanna deposit,” Alliance Resources said in its ASX announcement.

 

Email: info@allianceresources.com.au

Website: www.allianceresources.com.au

 

Full Ownership Provides Advancement Incentive

Alliance Resources (ASX: AGS) recently moved to 100 per cent-ownership of the company’s Wilcherry project in South Australia and has signalled it intends shifting up a gear in advancing the Weednanna gold deposit.

The company recently moved to 100 per cent-ownership of the Wilcherry project, acquiring the final percentage of the project from Tyranna Resources, greatly improving its ability to advance Weednanna on its own terms.

The deal eliminates the administrative burden and costs associated with operating a joint venture and will streamline the future statutory approvals required at the time Alliance submits a Mining Lease Proposal in respect of the Weednanna gold deposit.

Alliance is the latest in a line of suitors, dating back to the 1970s, eager to explore the project, located within the Gawler Craton, northern Eyre Peninsula, 40 kilometres north of Kimba in SA.

The project’s previous owner was Trafford Resources, which had acquired the project in 2006 from Aquila Resources, which had earlier acquired the project tenements to explore for IOCG deposits like Olympic Dam.

Trafford, along with IronClad Mining Limited, made a substantial investment on the project, however their efforts were mostly aimed at defining iron ore, Direct Shipping Ore (DSO) to be precise, in magnetite skarns, banded iron formations and near surface iron oxide deposits.

Trafford made inroads, establishing Mineral Resources totalling 224 million tonnes at 28.8 per cent iron in seven deposits, with 2.9 million tonnes at 55.5 per cent iron being either DSO or Dry Magnetic Separation product.

With the iron ore price enjoying some time in the limelight at present, it is well worth noting these Resources.

Likewise, the 2012-13, drilling programs carried out by IronClad to test an outcrop of high-grade hematite at the Zealous prospect, 13 kilometres northeast of Wilcherry Hill.

This drilling intersected high-grade tin (cassiterite) – which followers of the current electric vehicle debate would know to be a critical element in the manufacture of lithium-ion batteries.

The best intercepts from these programs returned:

12ZLRC007
7 metres at 3.28 per cent tin from 52m; and

13ZLRC001
5m at 2.29 per cent tin from 128m in.

Alliance Resources has approached Wilcherry from another angle, concentrating on what the company considers to be its substantial gold potential, and to date the company has increased both the project’s known mineralisation and potential.

At the time of writing the company was close to completing a Scoping Study to assess the commercial viability of establishing a standalone mining and processing operation at Weednanna.

In September 2018, Alliance Resources announced a maiden Mineral Resource estimate for the Weednanna gold deposit, part of the Wilcherry project, of 1.097 million tonnes at 5.1 grams per tonne gold for 181,000 ounces.

Alliance has always been confident in there being potential to increase the size of this Mineral Resource with further drilling, given many of the gold shoots comprising this mineral resource are open in at least one direction.

Alliance completed a 23-hole round of reverse circulation (RC) drilling at the Weednanna gold deposit in February this year to test for extensions of gold mineralisation in the southern area of the deposit at Shoots 4, 5E, and 11.

The drilling stayed on script, with results from this drilling program continuing to grow the size of the Weednanna deposit outside of the Maiden Mineral Resource area.

High-grade gold was encountered near the southern end of Shoot 4, returning intersections of:

19WDRC017
2 metres at 46.8 grams per tonne gold from 101m; and

19WDRC020
3m at 9.7g/t gold.

The drilling also continued to provide greater clarity at shoot 5E, returning intersections of:

19WDRC004
3m at 6.9g/t gold from 106m;

19WDRC007
10m at 7.7g/t gold from 117m, including 7m at 10g/t gold from 118m; and

19WDRC010
2m at 19.9g/t gold from 77m.

The gold potential of Shoot 11 was clearly demonstrated by intersections of:

19WDRCC012
3m at 7.3g/t gold from 97m (hangingwall); and
12m at 2.5g/t gold from 108m, including 8m at 3g/t gold from 108m;

19WDRC013
16m at 3.7g/t gold from 134m, including 10m at 4.3g/t gold from 134m;

19WDRC022
1m at 19g/t gold from 77m (hangingwall); and
7m at 4.5g/t gold from 90m.

Alliance originally identified Shoot 11 in 2018 while carrying out 3D modelling of the geology of the Weednanna deposit.

This shoot is positioned near the footwall contact of the Paleo-Proterozoic calc-silicate and magnetite skarn and was initially defined on two 25-metre spaced cross-sections by assay results including:

97WDRC010B
4m at 3.6g/t gold from 102m; and

18WDRC016
9m at 2.3g/t gold from 163m.

During December 2018, Alliance completed the first targeted holes into this shoot that returned:

18WDRC064
11m at 1.3g/t gold from 97m;

18WDRC065
7m at 1.5g/t gold from 112m; and

18WDRC066
2m at 16.1g/t gold from 126m.

The recent drilling program has followed suit by hitting further major gold intersection that not only extended Shoot 11, but identified connection to Shoot 9, which is in the same geological position.

Shoot 9 had also previously come to the company’s attention when it reviewed historic drill intersections that showed results from Shoot 9, included:

98WDDH004
7m at 1.5g/t gold from 163m;

98WDRC022
3m at 1.5g/t gold from 58m; and

98WDRC030
3m at 3.2g/t gold from 188m.

The upshot from the latest drilling results Alliance has received from Weednanna is that they have confirmed that, as evidenced at Shoot 4, substantial gold mineralisation can occur near the footwall contact of the Paleo-Proterozoic calc-silicate and magnetite skarn, and that lower grade gold zones can act as a vector towards higher-grade gold mineralisation.

Historically there has been a limited amount of drilling carried out at the footwall contact of the skarn, meaning it remains poorly tested.

Alliance is of the opinion that there is plenty of potential there to discover further gold in this geological position.

The company has plans to keep the drillbit spinning at Weednanna with ongoing RC drilling programs planned to continue to grow the size of the deposit, kicking off with the next phase of drilling expected to commence during April.

Alliance had prior carried out a Three Dimensional Induced Polarisation (3DIP) survey at the Weednanna gold deposit, to help target further areas of mineralisation.

Results from the 3DIP survey observed gold mineralisation is closely associated with chargeability bodies that exhibit moderate to high chargeability and that these chargeable bodies extend deeper than 200m below the surface.

It also demonstrated there to be a strong correlation between high density, high chargeability and high gold concentrations at Weednanna.

The 3DIP survey defined nine target zones based on where the high chargeability zones correlate with high density zones and are near, or along strike from, known high-grade gold shoots Alliance had delineated through its numerous drilling programs.

Five out of the nine targets are shallow, which the company believes highlights the remaining near-surface potential to substantially grow the mineral resource.

So, what the 3DIP survey produced was a chargeability model that closely correlates with underlying geological detail/mapping and known gold mineralisation at Weednanna.

It deemed that many of the targets appear to correlate with the margins of the known gold shoots and some have clear structural control observed in aeromagnetic and gravity datasets.

The highly chargeable zones from the 3DIP surveys also correlate well with high density zones identified by a detailed 3D gravity inversion model the company had generated in 2018 that suggested, like the recent drilling, there is clear potential for further discoveries at deeper levels than have been currently tested.

 

Email: info@allianceresources.com.au
Web: www.allianceresources.com.au

Directors: Ian Gandel, Tony Lethlean, Steve Johnston

Alliance Resources Continues Weednanna Gold Growth

THE DRILL SERGEANT: Alliance Resources (ASX: AGS) announced results of the latest round of reverse circulation (RC) drilling at the company’s Weednanna gold deposit on the Eyre Peninsula, South Australia.

Alliance Resources said the results from this latest round of drilling program had continued to grow the size of the Weednanna deposit outside of the Maiden Mineral Resource area, with highlights including:

High grade gold intersected near the southern end of Shoot 4 with intersections of:

19WDRC017
2 metres at 46.8 grams per tonne gold from 101m; and

19WDRC020
3m at 9.7g/t gold.

“These latest drilling results confirm that, as evidenced at Shoot 4, significant gold can occur near the footwall contact of the Paleo-Proterozoic calc-silicate and magnetite skarn, and that lower grade gold zones can act as a vector towards higher-grade gold mineralisation,” Alliance Resources said in its ASX announcement.

“In general, the footwall contact of the skarn is poorly tested by drilling and significant potential remains to discover further gold in this geological position.”

Shoot 5E continues to be defined with intersections of:

19WDRC004
3m at 6.9g/t gold from 106m;

19WDRC007
10m at 7.7g/t gold from 117m, including 7m at 10g/t gold from 118m; and

19WDRC010
2m at 19.9g/t gold from 77m;

The gold potential of Shoot 11 emerged with intersections of:

19WDRCC012
3m at 7.3g/t gold from 97m; (hanging wall)

19WDRC012
12m at 2.5g/t gold from 108m, including 8m at 3g/t gold from 108m;

19WDRC013
16m at 3.7g/t gold from 134m, including 10m at 4.3g/t gold from 134m;

19WDRC022
1m at 19g/t gold from 77m; (hangingwall) and

19WDRC022
7m at 4.5g/t gold from 90m.

Alliance explained that Shoot 11 was identified during 2018 while the company conducted 3D modelling of the geology of the Weednanna deposit.

This shoot is positioned near the footwall contact of the Paleo-Proterozoic calc-silicate and magnetite skarn.

 

Email: info@allianceresources.com.au

Website: www.allianceresources.com.au

 

Alliance Resources Extends Weendanna Gold

THE DRILL SERGEANT: Alliance Resources (ASX: AGS) released results from the latest round of reverse circulation (RC) drilling at the Weednanna gold prospect, which forms part of the Wilcherry Project Joint Venture between Alliance (79.01%) and Tyranna Resources (ASX: TYX) (20.99%).

Alliance Resources said drilling during September consisted 28 RC holes, for 4,278 metres at the Weednanna prospect, returning the following gold intercepts:

18WDRC027
20 metres at 12.44 grams per tonne gold from 104m, including 8m at 28.57g/t gold from 112m;

18WDRC029
3m at 5.97g/t gold from 64m;

18WDRC030
5m at 3.06g/t gold from 145m;

18WDRC034
5m at 3.96g/t gold from 117m;

18WDRC039
22m at 1.29g/t gold from 64m, including 8m at 2.3 g/t gold from 64m.

“The 20 metres at 12.44 grams per tonne gold intercept continues to demonstrate the outstanding exploration potential at Weednanna for the discovery and definition of high-grade gold lodes at relatively shallow depth,” Alliance Resources managing director Steve Johnston said in the company’s announcement to the Australian Securities Exchange.

 

Email: info@allianceresources.com.au

Website: www.allianceresources.com.au

 

Alliance Resources Ready to Move at Weednanna

Alliance Resources (ASX: AGS) wasted little time in letting the market know of its intentions for 2018.

Alliance Resources had hardly placed the New Year’s Eve champagne bottles in the recycling bin when it announced results from the third round of reverse circulation (RC) drilling at its flagship Weednanna gold prospect late in 2017.

The Weednanna gold prospect has a strike length of 1.3 kilometres, along which Alliance has identified exceptionally high-grade zones that are open in at least one direction.

The company has taken a systematic approach to Weednanna, including a review of past exploration results, which initially saw it focus on three high-grade areas – Targets 1, 2 and 3 with the aim of drilling for sufficient detail to enable a mineral resource estimate to be established.

Early results across Targets 1, 2 and 3 produced bonanza gold grades of:

49 metres at 6.3 grams per tonne gold from 45m, including 21m at 10.7g/t gold from 48m;

14m at 36.1g/t gold from 118m, including 5m at 95.6g/t gold from 120m;

16m at 7.7g/t gold from 81m, including 8m at 12.9g/t gold from 88m; and

60m at 5.6g/t gold from 47m, including 9m at 15.6g/t gold from 63m and 8m at 13.4g/t gold from 99m.

Buoyed by these results, Alliance widened its scope to include drilling at Target 4, which confirmed it as a new high-grade gold zone within the project complex.

The entire program saw a total of 21 RC holes (17WDRC050-70) drilled, 15 of which returned intercepts of greater than one gram per tonne gold, with four holes returning greater than 50g/t-metres gold.

The most recent results to be announced included:

17WDRC051
35 metres at 3.65 grams per tonne gold from 43m (Target 1), including 9m at 8.91g/t gold from 44m;

17WDRC057
6m at 13.63g/t gold from 59m (Target 2), including 3m at 26.6g/t gold from 62m;

17WDRC067
15m at 18.21g/t gold from 107m (Target 4), including 7m at 35.94g/t gold from 109m; and

17WDRC070
3m at 25.45g/t gold from 81m (Target 4), including 1m at 74.2g/t gold from 81m.

“In February we will be launching a fourth drilling program at Weednanna,” Alliance Resources managing director Steven Johnston told The Resources Roadhouse.

“Weednanna has assumed the greatest importance for us, especially since our drilling programs have continued to define these discrete, but high-grade, shoots.

“We have drilled the first three targets out to a spacing that makes a good case for launching into a Mineral Resource.

“We have one more program to conduct there, which will be carried out on Target 4, to bring it up to the same drilling pattern and then we’ll commence 3D modelling and a mineral resource estimate on those high-grade target areas.”

The Weednanna gold prospect forms part of the Wilcherry Project Joint Venture in the Gawler Craton of South Australia between Alliance (67.35%) and Tyranna Resources (ASX: TYX) (32.65%).

In September 2016, Alliance acquired a 51 per cent interest in the Wilcherry project for a moderate outlay of $2 million.

The deal placed Alliance in the position as the JV leader of an advanced project in the mineral-rich Gawler Craton that has, to date, been the subject of about $55 million in past exploration.

“We have been increasing our equity in the JV as a result of Tyranna Resources electing not to contribute to the fiscal year budget from 1 July 2017,” Johnston explained.

“By the end of the December 2017 Quarter we had increased our equity to 67.35 per cent, which will continue to increase in line with each quarterly expenditure.

“We believe the original decision we took to get involved with the project has paid off.

“We are achieving some great gold results and I am increasingly confident that Weednanna will be a mine one day and hopefully that will be sooner than later.”

Those hopes were boosted with positive results received from recent preliminary metallurgical testing of high-grade gold samples from Targets 1 and 3 at the Weednanna gold prospect.

The results demonstrated that at a grind size of P80 75 microns, cyanide bottle roll gold extraction over a 24 hour period was 89.4 per cent for WDMET001 and 92.8 per cent for WDMET003.

Using a finer grind size of P80 38 microns incrementally increased gold extraction for WDMET001 to 90.8 per cent and WDMET002 to 95.5 per cent.

“The positive results from the test work ticked an important box in the path to production,” Johnston said.

“That being the gold mineralisation is amenable to conventional grinding and cyanide recovery techniques.”

With Weednanna progressing to a satisfactory beat, Alliance is also looking to progress its Nepean South gold project, located 26 kilometres southwest of Coolgardie in Western Australia.

Alliance considers Nepean South to be prospective for both komatiitic-hosted nickel sulphide deposits and greenstone-hosted orogenic gold deposits.

Results from a final phase of infill auger soil sampling completed in the north-eastern part of the project area confirmed gold anomalism the company had previously indicated by wider-spaced sampling.

Subsequent results from all phases of soil sampling defined two coherent anomalies greater than 7.5ppb gold and totalling 2.1 square kilometres in area.

The company completed a 90-hole aircore drilling program in January, the first phase of which is designed to test for low-level gold in regolith (weathered Archaean rock) anomalism beneath gold in soil sampling anomalism.

Alliance believes results from this program could indicate vectors towards a primary gold deposit.

“We’ve currently awaiting the assays from Nepean South, which is something that I’m very excited about – not to take anything away from Wilcherry – but I certainly hope that Nepean will produce something of interest,” Johnston said.

“At Nepean we have a couple of large soil anomalies, the bulk of which have never been drilled before.

“The Nepean project is an increasingly interesting area that is located just four kilometres to the southwest of the Nepean nickel mine.

“Initially we picked the ground up looking for nickel, but through the exploration work we have carried out we have outlined gold anomalism there.

“It’s proximity to Coolgardie means it is located close to several gold processing plants, any of which could possibly take the mill feed should we prove up an economic discovery.”

Alliance is also continuing to work up regional targets within the Wilcherry JV area from the 26 conductive targets that were identified by a Heli-EM survey carried out in 2016 that may be prospective for massive sulphides, including copper, tin, zinc, lead and silver.

“The ground EM crew is continuing to work on identifying the next targets from that data.

“We are still conducting regional exploration for base metals and we only need to unlock one of those targets to be a game changer.

“After we’ve completed the drilling at Weednanna we’ll move the RC rig onto the next batch of regional targets.”

 

 

Alliance Resources Limited (ASX: AGS)
…The Short Story

HEAD OFFICE
Suite 3
51 – 55 City Road
Southbank, VIC, 3006

Ph: +61 3 9697 9090

Email: info@allianceresources.com.au
Web: www.allianceresources.com.au

DIRECTORS
Ian Gandel, Tony Lethlean, Steve Johnston