What the Analysts Say
WHAT THE ANALYSTS SAY: Interesting news and views from across the Resource Analyst universe.
Website: www.breakawayresearch.com
Company: Volta Mining (ASX: VTM)
Volta Mining (ASX: VTM) has a quality iron ore exploration portfolio located within highly-prospective regions of the Pilbara region of Western Australia.
A recently completed ‘stage-1’ RC drill program has identified significant widths of DSO (Direct Shipping Ore) quality iron ore mineralisation from surface and up to 128 metres vertical depth, interpreted to be an extension of the neighbouring 124 million tonnes at 60.3 per cent iron Sirius deposit which abuts the licence boundary.
Volta Mining has a 100 per cent interest in four licences prospective for iron ore, located in the Pilbara and a further two licences also prospective for iron ore, located in Gabon.
The most advanced project and the priority for the company is the Hancock Ranges iron ore project which hosts three nearby exploration licences, all of which are surrounded by iron ore ‘heavyweights’.
Immediately east of Volta’s licence, Brockman Mining (ASK: BCK) has delineated a 124 million tonnes Resource of high-grade, DSO type, haematite mineralisation. Interpretation of the local geology suggests the Boolgeeda Formation (which hosts the iron mineralisation) continues to the north-west into Volta’s exploration licence.
A ‘stage 1’ drill program has recently been completed which identified significant widths of DSO mineralisation from surface (and up to 128m vertical depth) with assays intersections in the range of 60 to 64 per cent iron.
Volta Mining has a very capable board with a proven track record in iron ore exploration and development; however, the prospectivity and strategic location of Volta’s licences also make the company a potential takeover target.
With an EV of $12.6 million, significant opportunity exists for further valuation upside.
Website: www.hartleys.com.au
Company: Cassini Resources Limited (ASX: CZI)
West Musgrave – Approvals In, Drilling Commenced
Cassini Resources recently received the clearing permits from the Department of Mines and Petroleum (DMP) for on-ground exploration to commence over the West Musgrave nickel-copper project in Western Australia.
The company has mobilised two reverse circulation (RC) rigs to site and drilling is now underway.
The initial drilling will target known zones of nickel-copper massive sulphide at relatively shallow depths within the Nebo deposit.
The aim of the RC drilling program will be to test the mineralised continuity of the higher-grade zones at Nebo-Babel, while increasing resource confidence and extending mineralisation.
The plus-25,000 metre program, will drill to an average depth of approx. 250m and we would estimate (assuming favourable drilling conditions) that 2 holes will be completed every 3 days, providing a strong flow of news for the 3 month drilling campaign.
In addition, a diamond drilling program (6-8 large diameter holes) is expected to commence in mid-October to collect representative samples for metallurgical testwork.
The diamond drilling program has been planned to obtain representative samples for the seven main ore types at Nebo-Babel.
Cassini has a healthy exploration budget, spending in the order of $4.5 million up until the end of March 2015.
Cash remains strong at an estimated $7.5 million.
Drilling at Succoth to progress geological model
Towards the end of the 2014 field season, Cassini is planning to drill a number of RC and diamond holes at the Succoth prospect.
The copper-rich deposit is located approx. 13km from Nebo-Babel and provides Cassini with a potential co-development opportunity.
The drilling program at Succoth will progress the geological understanding of the deposit and focus on the high-grade zones which are near-surface.
Infill and extensional drilling in the coming months should result in the definition of a maiden resource, which we would expect to be released late CY2014/early CY2015.
Our preliminary modelling suggests the Succoth resource may be in the order of plus-10 million tonnes at mineable grades (albeit higher cost).
Previous drilling by BHP included drill intercepts greater than 100m with copper grading around one per cent copper with lower grade nickel (approx. 0.07 per cent nickel) and some PGMs (around 0.3g/t platinum and palladium).
Prior to the commencement of drilling at Succoth, a DMP clearing permit will need to be granted, which the company expects to receive in early October.
With drilling now commenced at Nebo, first assays could be received as early as late September, which due to the nature of the drilling we would expect to be positive and well received by the market.
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