What the Researchers Say
WHAT THE BROKERS SAY: Interesting news and views from across the Resource Analyst universe.
Website: www.breakawayresearch.com
Company: Forte Consolidated (ASX: FRC)
Forte Consolidated is implementing a diligent and scientific approach to exploration with great success, as evidenced by the highly prospective Sledgehammer and Szarbs prospects.
Both prospects exhibit co-incident geochemical and geophysical anomalies, consistent with the target epithermal system.
No drilling has yet been undertaken at these targets, proving ample opportunity for a company re-rating as the prospects are further advanced.
Forte Consolidated (ASX: FRC) has made steady progress at its Johnnycake project, located in close proximity to the recently commissioned Mt Carlton gold/silver/copper mine in north east Queensland, where the company has conducted a systematic exploration approach to identify two high priority exploration targets.
The Sledgehammer prospect is defined by co-incident geochemical and geophysical features which together display the hallmarks of a sizable epithermal system prospective for gold and silver mineralisation.
The nearby Szarbs prospect is also shaping up to be a significant exploration target, demonstrating similar geochemical and geophysical characteristics to Sledgehammer, leading to the view that a second epithermal system exists a relatively shallow depths.
An IP Survey is currently underway at both prospects, which should help to define subsurface alteration and sulphide accumulation ahead of an anticipated drill program.
With a cash balance of $1.4 million the company is likely to undertake a moderate capital raising to fund these drilling programs, however, the calibre of these targets should not be underestimated and with a current enterprise value of $2.5 million, Forte is significantly leveraged to any positive news flow.
Website: www.hartleys.com.au
Company: Canyon Resources Limited (ASX: CAY)
Birsok drilling strongest grades to date (+55% aluminium oxide)
Canyon has received further assays from its maiden drilling program at the Birsok bauxite project in central Cameroon, confirming more good thickness and high-grade bauxite mineralisation from surface.
The latest results are some of the strongest to date, with reported intersects over the Djombi plateau in particular containing in parts, very high-grade (>50% aluminium oxide) bauxite with low contaminants (<5% silicon dioxide) from surface.
A total of 19 plateaus over four main prospects were drilled in the maiden drill program with results now received for over two thirds of the samples submitted.
The remainder of the assays are expected in less than two weeks.
Program to test surface extent of bauxite for DSO potential
The aim of the drill program was to test the surface extent of the bauxite and to provide an understanding of the depth profile and continuity of the mineralisation.
The drill coverage in the first-pass program is considered sufficient for an initial exploration target over the plateaus tested, and could potentially provide some areas of Inferred resource.
Promising first-pass results continue to be received from the Djombi prospect with further high-grade aluminium oxide bauxite defined at or near surface over the DJ08 North, South and DJ17 targets.
These plateaus form a continuous 3.5 kilometre long and up to 400m wide mineralised zone, with defined bauxite thickness averaging approx. 4m thick with Aluminium oxide contents grading 40 to 45 per cent.
Some of the better results including:
6m at 54 per cent aluminium oxide (2.62% total silicon dioxide) from surface;
3m at 55.4 per cent aluminium oxide (4.3% total silicon dioxide) from surface;
4m at 49.1 per cent aluminium oxide (5.8% total silicon dioxide) from surface; and
4m at 54.7 per cent aluminium oxide (1.4% total silicon dioxide) from surface (A/S ratios up to 39, with generally observable low total silica contents).
Reactive silica contents are still yet to be determined but as a general rule of thumb would expect them to be approx. 60 per cent of the total silica contents.
The Fedal prospect, prior to drilling was considered to be a lower priority target due to the mapped surface expression of the bauxite.
Drilling completed to date over this prospect has highlighted a greater variability in both bauxite grade and thickness.
The prospect also contains some areas of high total silica (> 30% silicon dioxide) with alumina contents of <40% aluminium oxide, but with some better grade zones (>40% aluminium oxide), with silica levels around 10% silicon dioxide.
Existing infrastructure for a potential development
The Birsok bauxite continues to be confirmed as a good-quality product which has potential to be direct shipping ore.
A second phase of drilling (infill and extension) is planned to commence later in the year (likely in October) following the wet season.
Existing rail capable of carrying bulk commodities is located within 10km of the project area and has available capacity.
The rail network connects to the operating port of Douala (approx. 700km from Birsok), with a new deep-water port at Kribi (approx. 750km from Birsok) expected to be completed in 2014.
Disclaimer: The above is intended as a guide only. The Roadhouse accepts no responsibility for investments made from this advice, successful or otherwise.
The views, opinions or recommendations of this article do not in any way reflect the views, opinions, recommendations, of The Resources Roadhouse.
The Roadhouse makes no representation or warranty with respect to the accuracy, completeness or currency of the content. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian financial services licensee before making investment decisions.