THE INSIDE STORY: December usually heralds a slow down as companies up-stumps for the Christmas break.
Not so gold exploration play Tyranna Resources (ASX: TYX), which commenced a final drilling program at the Golf Bore prospect, part of the company’s Jumbuck gold project, located in the Western Gawler Craton of South Australia.
The Jumbuck project covers approximately 8,000 square kilometres of highly-prospective and under-explored ground surrounding the million ounce Challenger gold mine operated by Kingsgate Consolidated (ASX: KCN).
The project emerged as the company’s front-runner from the merger of Trafford Resources and IronClad Mining, which resulted in a portfolio of projects representing some nine years of exploration prospect accumulation, boasting an independently-rated value of around $30 million.
Tyranna has a great deal of enthusiasm for its Gawler Craton projects, as the company is convinced the Challenger deposit cannot just be the only multi-million ounce gold deposit sitting out in the middle of the craton on its own.
Before the merger IronClad had reviewed a raft of historic exploration data, which identified over 300 targets, all about the same or greater than the single point anomaly on which Challenger was discovered (185ppb gold).
Tyranna has previously stated it aims to bring a number of these targets into production, potentially processing ore through the mill at Challenger as part of the company’s Joint Venture with its neighbour Kingsgate Consolidated (currently TYX 59 per cent – KCN 41 per cent).
Gold ore from Golf Bore, subject to certain conditions of the Joint Venture, can be treated at the Challenger mill.
Recently Kingsgate announced its intention to sell its subsidiary company, Challenger Gold Operations (CGO), which includes the Challenger mine and processing facilities, as well as its minority share in the TYX / KCN Joint venture.
With the decision to sell CGO, Kingsgate has also indicated it will no longer contribute to Tyranna’s proposed exploration and development budget for the coming six month period.
Undeterred, Tyranna has made its intentions clear that it will sole fund the proposed $2 million program which, if completed as planned, would result in Tyranna earning an additional 12 per cent equity in the joint venture.
This would then result in the Joint Venture ownership becoming approximately TYX – 71 per cent and KCN – 29 per cent.
The latest round of drilling, like the bulk of its efforts this year, will be carried out at the Golf Bore prospect (EL 4577), which is just one of seven advanced prospects situated within Tyranna’s Jumbuck gold project.
The drilling is to comprise 2,000 metres of reverse circulation (RC) drilling and has been designed to follow the earlier success the company achieved at Golf Bore during August and September, from which it has defined and extended the known, near surface, supergene (oxide) gold resource at the Golf Bore prospect.
The continuous shallow supergene zone has an average thickness of 5m over an 800m strike length with an average width of 120m
The drilling included four holes that were designed to target the deeper zones of mineralisation where earlier drilling returned encouraging gold intersections at depth including 2m at 31.6g/t gold and 1m at 27.9 g/t gold.
According to Tyranna these results enhanced the company’s understanding of the deposit and resulted in the identification of at least three primary feeder shoots, which it considers likely to carry persistent high-grade gold, thereby enhancing the economics of the prospect
On the strength of the drilling results the company commenced mining feasibility studies at Golf Bore, submitting metallurgical samples of the different ore types from the prospect to Nagrom Laboratories in Perth for initial metallurgical studies.
High-grade and low-grade samples of oxide and fresh ore were tested for the recovery of gold by simple gravity methods and by conventional cyanidation in a Carbon in Leach (CIL) plant.
The gravity results demonstrated the fresh ore, which forms most of the orebody, is readily amenable to gravity processing with 42 per cent to 45 per cent gold recovery achieved at a coarse grind size of one millimetre.
The response of the high-grade oxide ore (greater than 5g/t) to gravity processing returned a gold recovery of 69 per cent in less than two per cent of the mass.
Although the results for the lower grade oxide ore sample were less definitive with regard to gravity recovery, Tyranna will continue to test both the fresh and oxide ores more thoroughly in the next series of test work in order to determine the optimal grind size for gravity recovery.
Tyranna has also been busy working up the Golf Bore North prospect, which is located on EL 5526 (100 per cent-owned by Tyranna Resources) immediately to the north of Golf Bore.
The North Eastern extent of the Golf Bore gold mineralisation creeps into EL 5526 and is highlighted by the continuation of the same, strong calcrete anomaly at Golf Bore.
Historic exploration work carried out by previous owners entailed the drilling of four lines of Rotary Air Blast (RAB) across that particular calcrete anomaly, returning gold intersections on the three Southern lines including:
1m at 9.89g/t gold and;
3m at 2.48 g/t gold.
Tyranna has determined that these intersections occur exactly on the strike line of the Golf Bore mineralisation and considers them to be significant, given the first pass nature of the drilling.
Riding on the back of the success of its drilling at Golf Bore, Tyranna has elevated the Golf Bore North prospect in prospectivity and importance to the Jumbuck project as a whole.
The company plans to carry out a comprehensive drilling program at Golf Bore North, with the aim of bringing both projects to the same technical level.
By doing this Tyranna anticipates it will be able to greatly increase the Jumbuck gold project’s total mineable gold inventory.
The company recently received heritage clearance from the Golf Bore North prospect tradtional owners, the Antakirinja Matu – Yankunytjatjara Aboriginal Corporation (AMYAC).
This clearance allows Tyranna to include planned drilling at Golf Bore North as well as at Golf Bore, which basically doubles the potential strike length of the target resource at Golf Bore to approximately 1.5 kilometres.
Weather permitting Tyranna intends to maintain its drilling focus within the Jumbuck project area throughout the coming year.
The new drilling will test the continuity of the central feeder structures at Golf Bore, which Tyranna is confident could indicate the existence of a gold mineralised structure similar to the Challenger Mine.
Drilling will also test the depth potential of other structures previously delineated.
The company has already announced its immediate target is to compile a near-surface (0m to 60m) gold inventory of approximately 750,000 resource ounces that can be readily and simply processed.
Once this has been established the company will target selected, deeper, primary ore with an overall aspirational target of over three million ounces within the next two years.
While all this is going on the mining feasibility study at Golf Bore will continue in order to attain earliest feasible and optimal production.
Tyranna Resources (ASX-TYX)
…The Short Story
Level 2, 679 Murray Street
West Perth, WA, 6005
PH: +61 8 9485 1040
Fax: +61 8 0485 1050