Cassini Resources Continues Encouraging Run at Mount Squires

THE DRILL SERGEANT: Cassini Resources (ASX: CZI) continued its recent good run of encouraging RC drilling results from the company’s 100 per cent-owned Mount Squires project in the Musgrave Province of Western Australia.

Cassini Resources declared the latest results have again returned economic mineralisation near surface and extending to shallow depths.

The Mount Squires project is an early stage exploration project that Cassini considers highly prospective for gold, located adjacent to the western border of the company’s West Musgrave JV project with OZ Minerals (ASX: OZL).

Results from another three holes of the 10-hole program have been received and include results of:

27 metres at 1 gram per tonne gold from 31m, including 3m at 2.59g/t gold from 38m; and

19m at 0.68g/t gold, including 6m at 1.26g/t gold from 38m.

“Recent drilling results support the current geological interpretation,” Cassini Resources said in its ASX announcement.

“Mineralisation is hosted within a hydrothermal breccia at the stratiform contact of a rhyolite and overlying (predominantly barren) volcaniclastic unit.

“Mineralised lodes, defined by a 0.1g/t gold halo, strike E-W to ESE-WNW and are near vertical to steeply south dipping.

“Mineralisation is potentially controlled by the intersection of NW-SE and SW-NE trending structures.

“Surface rock chip sampling of the hydrothermal breccia and extrapolation of recent and historical drill results indicates a potential mineralised strike of at least 600m which remains open down plunge.”

Cassini indicated it anticipates receiving results for the remaining four holes over the next couple of weeks.

The company said that regardless of the results, it has been encouraged enough already to begin planning follow-up programs at Handpump and the remaining project area.

The evaluation of recent airborne magnetic survey geochemical data will also inform the company’s decision-making process for the next phase of exploration.





Pioneer Resources and Novo Resources Welcome Sumitomo to Kangan Gold JV

THE BOURSE WHISPERER: Pioneer Resources (ASX: PIO) informed the market of TSX-listed Novo Resources Corp.’s intention to enter into a US$30 million farm-in and Joint Venture agreement with Sumitomo Corporation of Tokyo, Japan, and its wholly-owned Australian subsidiary.

The aim of the JV is to advance Novo’s Egina project located approximately 80 kilometres south-southwest of Port Hedland in Western Australia.

The Egina project includes Pioneer Resource’s Kangan gold project, where Novo is currently earning an interest under a binding memorandum of agreement that has now been replaced with a new agreement on essentially the same terms that allows Sumitomo to become a party to it.

Pioneer retains a 30 per cent free-carried interest in the Kangan project up to a decision to mine, after which it becomes a contributing JV partner.

Pioneer explained that Sumitomo, via an Australian subsidiary, has agreed to join Novo in spending $460,000 within the next 18 months to earn a joint 70 per cent interest in the Kangan gold project.

Upon Novo and Sumitomo earning their combined 70 per cent interest, Pioneer is free-carried up to a decision to mine and thereafter contributes in proportion to its JV interest.

The Kangan gold project, currently held 100 per cent by Pioneer, forms a key part of Novo’s Pilbara exploration portfolio and sits within that company’s Egina project, which lies in the heart of the Pilbara conglomerate gold province.

“The addition of Sumitomo to the Kangan farmin/JV adds significant financial and technical power to support Novo’s efforts at the Kangan JV project, and we look forward to receiving results as exploration programs at Egina and Kangan advance,” Pioneer Resources managing director David Crook said in the company’s announcement to the Australian Securities Exchange.





Calidus Inks Novo JV and Exercises Haoma Option

THE BOURSE WHISPERER: Calidus Resources (ASX: CAI) has been busy across a couple of fronts, completing due diligence on the Novo Tenements and exercising an option to acquire the Haoma tenements.

Having completed due diligence on the Novo tenements, Calidus Resources has notified TSX.V-listed Novo Resources Corp. of its intentions to proceed with the transaction.

Calidus said its initial review of the tenements had highlighted multiple soil anomalies both along the main Klondyke trend and in alternate geological settings that it will investigate.

The company is commencing heritage surveys with the traditional owners to facilitate drilling on the Novo tenements this calendar year.

As per the deal Calidus will issue 20 million shares to Novo as consideration for an earn-in righ.

Calidus may earn a 70 per cent interest in the Novo tenements by expending $2 million over the next 3 years.

In other news, recent drilling results recorded on Haoma Mining’s (ASX: HAO) Warrawoona and Klondyke leases has led to Calidus exercising its option to acquire these tenements, ensuring 100 per cent ownership of what it considers to be a, “rapidly developing gold development project”.

Calidus explained the Haoma deal provides 100 per cent-ownership of the Klondyke trend and with the Novo JV, provides majority ownership of the entire Warrawoona greenstone belt.

The company will issue of 37.5 million shares and $500,000 cash to Haoma as consideration.

“Based on the outstanding results we have received so far in our maiden drill campaign, the consistency and grade of mineralisation we are defining and the large exploration upside we are seeing in the district, we have decided to proceed both with the Novo JV and to execute the right to purchase the Haoma tenements,” Calidus Resources managing director Dave Reeves said in ithe company’s announcement to the Australian Securities Exchange.

“This ensures that Calidus has full ownership over the main Klondyke shear and controls all exploration activities over the entire Warrawoona Greenstone Belt.

‘We have commenced heritage surveys over the planned drill areas on the Novo ground with the traditional owners and look forward to reporting further drill results in the very near term from the recently completed drilling that targeted the high-grade Copenhagen and Fieldings Gully deposits that are also located on tenements we have purchased today under the Haoma option.”