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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.

 

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.

Matsa Resources explained the drilling is aimed at providing grade control around the current production area and provide extensions to the existing resources through finding additional high-grade mineralised shoots to contribute to the next phase of mining.

This initial phase is expected to be part of a much larger campaign over the next six months aimed at increasing the gold resource at the Red October underground gold mine.

A recent capital raising undertaken by the company has enabled it to plan for a sizeable and comprehensive diamond drilling program at Red October.

This first program will target the Red October Shear Zone (ROSZ) North and consists of an initial 13 holes.

The focus of the first eight holes is to get a better understanding and potential for the high-grade shoots below the current workings and to test for additional high-grade shoots to the north.

A further five holes will be drilled based on the results both visually and via assay results from the first eight holes.

Four of these holes will be infill or grade control holes.

The last of these holes is a resource definition hole within the ROSZ.

Matsa expects the results of this drilling program will enable better planning for mine design and open additional areas for mining as part of its longer-term production aim.

“We are now underway in the next stage of underground exploration drilling at Red October,” Matsa Resources executive chairman Paul Poli said in the company’s announcement to the Australian Securities Exchange.

“This is the start of a much larger exploration programme aimed at delineating new future mining areas and really opening Red October up.

“We saw previous drilling result in bonanza grades and we know that previous drilling by Saracen identified many gold targets ranging between 15 grams per tonne to 30 grams per tonne.

“If we can continue identifying areas with these high grades as per our last program…it can only augur well for the next stage of production.”

 

Email: reception@matsa.com.au

Web: www.matsa.com.au

 

Matsa Resources Commences Ore Haulage to Sunrise Dam

THE BOURSE WHISPERER: Matsa Resources (ASX: MAT) announced the first delivery of ore from the company’s Red October gold mine in Western Australia to the Sunrise Dam gold treatment plant owned by AngloGold Ashanti Australia (AGAA).

Matsa Resources executed a five years Ore Purchase Agreement with AGAA for the purchase of gold ore from the Red October gold mine that is to be treated at the Sunrise Dam gold mine.

AnlgoGold Ashanti’s Sunrise Dam treatment plant is a 3.8 million tonne per annum mill and is located approximately 10 kilometres north of the Red October gold mine and provides Matsa with access to a substantial and modern nearby milling facility.

The haulage route is a predominately Matsa owned and maintained road around Lake Carey of 60kms between Red October and Sunrise Dam.

Matsa has previously delivered ore from its Fortitude and Red Dog gold mines to Sunrise Dam.

“The delivery of first ore from the Red October gold mine is another significant milestone for both Matsa and its shareholders,” Matsa Resources executive chairman Paul Poli said in the company’s announcement to the Australian Securities Exchange.

“It is expected that this will be the start of regular, continuous ore deliveries to Sunrise Dam for the foreseeable future generating a regular income stream in the process.

“Under the previously announced ore purchase agreement, AngloGold are keen to accept potentially all ore from Red October for up to five years allowing us to focus on developing a long-term production profile.

“We remain committed and are confident that we can build a long-term profitable mine at Red October.”

 

Email: reception@matsa.com.au

Website: www.matsa.com.au

 

Companies of Interest Presenting at Gold Coast Investment Showcase

THE CONFERENCE CALLER: The 2019 Gold Coast Investment Showcase is just two weeks away and The Resources Roadhouse continues its look at companies that will be in attendance.

 

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.

The gold deal comes as Pioneer maintains its caesium-focus with drilling underway at the company’s Sinclair lithium-caesium-tantalum (LCT) Pegmatite at its 100 per cent-held Pioneer Dome project near Norseman in Western Australia.

The drilling coincides with the company’s plans for a third shipment of pollucite scheduled for the third week of June 2019.

The RC drilling, comprising 2,000m, has been designed to discover extensions to the core zone of the Sinclair Pegmatite, which contains the complex array of alkali metal minerals including pollucite, potash feldspar, petalite, lepidolite and cleavelandite.

Drilling will test a zone approximately 150m long both to the north and south of the pit.

A further 500m of diamond core drilling will commence as the RC drilling phase nears completion, targeting pollucite mineralisation extensions and caesium anomalies that occur to the north of the Sinclair Pit.

 

Matsa Resources (ASX: MAT) recently announced the execution of an Ore Purchase Agreement with AngloGold Ashanti Australia (AGAA) for the purchase of ore from the company’s Red October mine.

Matsa Resources informed the market that ore from Red October is to be treated at the AGAA-owned Sunrise Dam gold mine, for up to five years.

The 3.8 million tonne per annum mill at the Sunrise Dam gold mine is located approximately 60 kiloetres from the Red October gold mine and provides Matsa with access to a nearby milling solution for its Stage 1 production ore and for a further 4.5 years thereafter.

Matsa has previously delivered ore from its Fortitude and Red Dog gold mines to Sunrise Dam and is confident in the outcomes of the ore processed there.

Matsa will be responsible for mining and transporting the ore to Sunrise Dam with AGAA taking possession of ore once delivered.

The company said the agreement will allow Matsa to continue to progress mining at the Red October gold mine at a relatively low capital cost.

“The execution of the Agreement with AngloGold Ashanti continues our strong relationship and builds on the MoU both parties entered into in mid-2018,” Matsa Resources executive chairman Paul Poli said.

“Previous mining campaigns at Fortitude and Red Dog have been successfully processed at Sunrise Dam with minimal fuss and we expect this to be no different.

“The fact that AngloGold are prepared to potentially accept all ore from Red October for up to five years is testament to this as Matsa looks to develop a longer term mine plan in the future.”

 

Graphite-focused Renascor Resources (ASX: RNU) has been bust at the company’s 100 per cent-owned Siviour graphite project, located in South Australia’s Eyre Peninsula.

Renascor Resources received a Letter of Interest (LoI) for export credit agency (ECA) cover from Atradius Dutch State Business, the Government of the Netherlands’ official ECA

The LoI came after a preliminary assessment of the Siviour graphite project by Atradius on behalf of the Dutch State, confirming in principle project finance support under the Dutch export credit guarantee scheme.

Atradius is the official ECA that administers the ECA scheme for the Government of the Netherlands.

In order to promote Dutch exports, Atradius offers insurance and guarantee products for projects involving the export of capital goods from the Netherlands.

ECA Cover from Atradius is often used to assist Dutch exporters in winning export transactions and increasing the capacity to raise finance from banks for projects involving Dutch exports.

The Dutch ECA scheme was identified as applicable to Renascor’s Siviour project based on the sourcing of Dutch content through Renascor’s Dutch strategic engineering partner, Royal IHC.

Renascor has estimated that up to approximately 60 per cent of project capital expenditure is expected to qualify under the Atradius ECA Cover.

Renascore also had a Mineral Lease for the Siviour graphite project granted by the South Australian Minister for Energy and Mining.

The grant came on the back of three-years of preparation and review of all potential environmental, social, economic and technical aspects of the project.

A positive Pre-Feasibility Study confirmed the opportunity to unlock further value from Siviour through Australia’s first integrated graphite concentrate and spherical graphite operation.

Renascor believes the project economics of the Spherical PFS highlight Siviour’s potential to achieve high economic returns through the vertically integrated development of a mine and flake graphite concentrate operation, plus downstream production of spherical graphite.

The company also upgraded the JORC Mineral Resource estimate for the Siviour project after completion of an infill drill program, which was conducted to improve the confidence in the Siviour Indicated Resource

This resulted in a Measured Resource estimate of 15.8 million tonnes at 8.8 per cent total graphitic carbon (TGC) for approximately 1.4 million tonnes of contained graphite.

The total (Measured, Indicated and Inferred) Siviour Mineral Resource estimate now consists of 87.4 million tonnes at 7.5 per cent TGC for 6.6 million tonnes of contained resource (with 64 per cent classified as Measured or Indicated).

 

Matsa Resources Strikes 5 Year Ore Purchase Agreement with AngloGold Ashanti

THE BOURSE WHISPERER: Matsa Resources (ASX: MAT) has executed an Ore Purchase Agreement with AngloGold Ashanti Australia covering the purchase of ore from the former’s Red October mine which is to be treated at the AGAA-owned Sunrise Dam gold mine, for up to five years.

Matsa Resources said the terms of the agreement remain confidential; however, it did say that costs and revenues of the ore purchase agreement are entirely consistent with the parameters applied in its previously published mining studies.

The 3.8 million tonne per annum mill at the Sunrise Dam gold mine is located approximately 60 kms from the Red October gold mine and provides Matsa with access to a nearby milling solution for its Stage 1 production ore and for a further 4.5 years thereafter.

Matsa has previously delivered ore from its Fortitude and Red Dog gold mines to Sunrise Dam and remains confident in the outcomes of the ore processed there.

The company will be responsible for mining and transporting the ore to Sunrise Dam with AGAA taking possession of ore once delivered.

Matsa Resources declared the agreement will allow it to progress mining at the Red October gold mine at a relatively low capital cost.

“The execution of the agreement with AngloGold Ashanti continues our strong relationship and builds on the MoU both parties entered into in mid-2018,” Matsa Resources executive chairman Paul Poli said in the company’s announcement to the Australian Securities Exchange.

“Previous mining campaigns at Fortitude and Red Dog have been successfully processed at Sunrise Dam with minimal fuss and we expect this to be no different.

“The fact that AngloGold are prepared to potentially accept all ore from Red October for up to five years is testament to this as Matsa looks to develop a longer term mine plan in the future.”

Matsa added that while production has commenced at Red October, as previously advised, there has been a methodical build up to bringing ore to surface as finalisation of a number of items is completed and to ensure that an ore purchase agreement was in place to ensure an orderly transition into full scale mining.

The company expects first delivery of ore to Sunrise Dam will occur by the end of June 2019.

 

Email: reception@matsa.com.au

Website: www.matsa.com.au

 

Matsa Resources Encouraged by Fortitude North Drilling

THE DRILL SERGEANT: Matsa Resources (ASX: MAT) received results from diamond and RC drilling undertaken at Fortitude North within the company’s Lake Carey gold project in the Eastern Goldfields of Western Australia.

Matsa Resource’s recent drilling at Fortitude North has indicated a primary gold mineralised zone that dips moderately towards the east northeast and remains open for 1.5 kilometres to the south.

The drilling consisted of a single diamond drill hole drilled for stratigraphic and structural definition purposes.

The hole intersected primary gold mineralisation with a best intercept of:

8 metres at 2.94 grams per tonne gold from 106.25m, including 5.75m at 3.8g/t gold and 1.3m at 6.73g/t gold.

Matsa has interpreted this intersection to be the down-dip extension of previously announced high-grade gold intersections in RC and aircore drilling located at the northern end of a aircore gold anomaly of which 80 per cent remains untested by RC or diamond drilling.

“Further drilling is planned, including lake diamond drilling over the southern part of the basement gold mineralisation,” Matsa Resources said in its ASX announcement.

 

Email: reception@matsa.com.au

Website: www.matsa.com.au

 

Matsa Resources Encounters Multiple Gold Intersections at Red October

THE DRILL SERGEANT: Matsa Resources (ASX: MAT) announced results from a recently completed grade control diamond drilling program at the company’s Red October gold mine in the Eastern Goldfields of Western Australia.

Matsa Resources achieved multiple intersections of very high-grade gold from the recently completed 38-hole grade control drilling program at the Red October gold project with gold intercepts at the for Red October Shear Zone including:

1.6 metres at 36.9 grams per tonne gold;
4.32m at 16.30g/t gold;
2.84m at 15.95g/t gold; and
6.3m at 4.54g/t gold.

Additional high-grade gold intercepts were also encountered, including:

0.81m at 181.5g/t gold;
1.33m at 40.51g/t gold; and
0.8m at 248g/t gold.

The company said the results provide a compelling platform for the current mining phase and can positively affect mining outcomes, producing new opportunities for immediate mining outside of the existing initial mining phase.

“For the first time, we can prove that substantial new mining opportunities remain at the Red October gold project,” Matsa Resources executive chairman Paul Poli said in the company’s announcement to the Australian Securities Exchange.

“The results achieved by this drilling program are extremely exciting for the company.

“Our belief continues to be, that substantial gold zones remain undiscovered and abundant opportunities exist to develop a long term, highly rewarding, underground gold mining operation at Red October.

“This belief was the core reason we acquired Red October.

“We will enthusiastically continue to grow and develop Red October and we expect many more exciting results.”

 

Email: reception@matsa.com.au

Website: www.matsa.com.au

 

Matsa Resources Commences Mining at Red October

THE BOURSE WHISPERER: Matsa Resources (ASX: MAT) has commenced underground mining operations at the company’s 100 per cent-owned Red October gold project in Western Australia’s Eastern Goldfields.

Matsa Resources said that mining activities, including decline preparation and other site preparation are underway with first ore scheduled to be produced and ready for delivery in April.

The company explained that the commencement of mining operations at Red October is the culmination of two mine studies, which have delivered a comprehensive mine plan, that proposes a highly profitable, low cost targeted mining operation over an initial seven month period – with strong potential to extend mining in-line with the company’s goal of delivering a substantial long term mining operation at Red October.

Matsa anticipates the mining operation to generate revenue of $16.09 million and deliver a net cash surplus $4.075 million.

All necessary approvals for mining at Red October are in place, and toll milling/ore purchase agreements are currently being negotiated.

“I am delighted with the work done in getting the Red October gold mine to the point where we can announce mining and production in early 2019, subject to a suitable toll milling/ore purchase agreement being finalised,” Matsa Resources executive chairman Paul Poli said in the company’s announcement to the Australian Securities Exchange.

“Although planning indicates initial production over a seven-month period, I am very confident ongoing exploration and increased knowledge will see production go beyond that timeframe.”

 

Email: reception@matsa.com.au

Website: www.matsa.com.au

 

Matsa Resources and AngloGold Ashanti Sign MoU

THE BOURSE WHISPERER: Matsa Resources (ASX: MAT) has struck a Memorandum of Understanding (MoU) with AngloGold Ashanti Australia (AGAA).

Matsa Resources said the deal would be of great benefit to the company’s gold mining and exploration activities throughout its Lake Carey gold project which includes the Fortitude, Red Dog and Red October gold mines in Western Australia.

Key aspects of the MoU include:

AGAA to receive first option, and endeavour to treat all gold ore produced by Matsa within the MoU area subject to ore complying with technical requirements;

Both parties to enter a separate technical data sharing agreement under which exploration and other technical information is to be shared and discussed, subject to confidentiality provisions;

Sharing of infrastructure including airport, roads, medical and other facilities where mutually beneficial; and

A model access agreement to be used in all instances of overlapping tenements, especially miscellaneous licences for haul roads etc. which will streamline the grant process within the MoU area.

Matsa explained the non-binding MoU is the outcome of a working relationship established between Matsa and AGAA over the last two years, which included the Fortitude trial mine that ultimately underpinned the economic viability of that recently completed operation.

The MoU covers a large area including Matsa’s Lake Carey and Red October gold projects and AGAA’s Lake Carey and Sunrise Dam operations in the Lake Carey district.

“This agreement represents a massive increase in potential and boost in credibility to Matsa’s Fortitude, Red October and Red Dog mines within the stated area of interest,” Matsa Resources executive chairman Paul Poli said in the company’s announcement to the Australian Securities Exchange.

“Matsa and AngloGold have developed a strong working relationship with each other and this MoU strengthens that relationship to help identify and develop new gold deposits to both party’s benefit.

“Both companies are winners with this cooperation as it allows Matsa access to facilities and knowledge that has been developed by AngloGold over many years.

“This access will strengthen and increase the ability of Matsa to grow its gold ore resources which in turn may assist AGAA to gain additional ore feed for the Sunrise Dam treatment plant.

“It’s a ‘win-win’ for both companies.”

 

Email: reception@matsa.com.au

Website: www.matsa.com.au

 

Matsa Resources Completes Maiden Red Dog Resource

THE DRILL SERGEANT: Matsa Resources (ASX: MAT) released a Mineral Resource for the company’s 100 per cent-owned Red Dog project, located near Laverton in Western Australia.

Matsa Resources declared the JORC 2012 Code-compliant Red Dog Mineral Resource estimate of 368,000 tonnes at 2.2 grams per tonne gold for 26,300 ounces of gold with the majority of ounces (94%) sitting in the Indicated Category.

The company explained the resource estimate has been reported at a 0.5g/t gold lower cut-off and has not been constrained within a resource pit shell.

The Red Dog project is located 25 kilometres west of the company’s Fortitude gold project where trial mining is underway.

The Resource estimate follows recently completed RC drilling at Red Dog with results including:

17RDRC077
6 metres at 155 grams per tonne gold from 6m, including 1m at 921g/t gold from 7m;

17RDRC073
11m at 2.59g/t gold from 5m;

17RDRC082
14m at 1.97g/t gold from 3m;

17RDRC029
6m at 4.57g/t gold from 13m;

17RDRC087
8m at 3.23g/t gold from 22m;

17RDRC032
8m at 3.11g/t gold from 4m;

17RDRC081
10m at 2.31g/t gold from 8m; and

17RDRC072
8m at 2.56g/t gold from 11m.

“In order to determine the economic potential of the Red Dog gold project, Matsa is conducting pit optimisations, metallurgical testing and mining studies,” Matsa Resources said in its ASX announcement.

“A Native Vegetation Clearing Application was completed and submitted to DMIRS late in 2017 in order to speed up potential mining timeframes.

“Matsa considers the Red Dog project has the potential to be a near term mining opportunity with Matsa’s Fortitude mine infrastructure only 25 kilometres to the east and the Red October camp and accommodation infrastructure only 20 kilometres to the north.”

 

 

Email: reception@matsa.com.au

Website: www.matsa.com.au