Morning News Bites – October 27

Wiluna Mining Excited About Latest Drill Results.

Wiluna Mining has released high-grade results from a further 45 holes and 10,534m of resource development drilling “under the headframe” at the Wiluna Mining Centre. So excited are they by the results that they titled their announcement: “The Giant is Now Very Much Awake.”

The Company is targeting infill definition and further extensions to high-grade sulphide zones in the initial areas to be mined, because every 1 g/t increase in the grade in the sulphides should result in an additional 25kozpa of production in Stage 1 and 50kozpa in Stage 2, resulting in lower production costs per ounce.

Wiluna Mining Executive Chair, Milan Jerkovic, commented:  “Exceptional drilling results continue to flow from high priority sulphide mining zones at the Wiluna Mining Centre. This is noteworthy because results will underpin our updated Ore Reserves estimate to be published in January 2021. The Company is targeting high-grade zones, because every 1 g/t increase in the grade should result in an additional 25kozpa of production in Stage 1 and 50kozpa in Stage 2.

Some of the results went ~11metres at 29.4g/t and 3 metres at 100g/t with other holes producing grades well over 5g/t.

They say that exceptional drill results from each of the priority mining areas continue to validate the Company’s Stage 1 target of mining approximately 750,000 tonnes of underground sulphide ore per annum to produce, when fully ramped up, approximately 120,000oz per annum in gold doré and gold in concentrate commencing in October 2021.

Stavely Reports Biggest Hits Yet at Cayley Lode.

Stavely Minerals released resource drilling within the high-grade Cayley Lode discovery at the Thursday’s Gossan prospect, part of its 100%-owned Stavely Copper-Gold Project in Victoria, has returned one of the most significant intercepts since its discovery in September last year.

The spectacular new intercept in diamond hole SMD104, located ~275m south-east along strike from the discovery intercept of 32m at 5.88% Cu, 1.00g/t Au and 58g/t Ag in SMD050 continues to reinforce the scale, continuity and shallow nature of the copper-gold-silver mineralisation within the Cayley Lode.

An intensive resource drill-out is continuing with a focus of extending to the northwest within the 1.5km long discovery zone, with in-fill and step-out drilling continuing based on a roughly 40m x 40m drilling grid.  The Mineral Resource drill-out is well advanced and progressing well.

Very broad zone of significant copper mineralisation intersected from shallow depths in the Cayley Lode in drill hole SMD104:

144m at 1.04% Cu, 0.15g/t Au and 3.4g/t Ag from 35m down-hole, including: ▪ 84m at 1.55% Cu, 0.23g/t Au and 5.0g/t Ag from 95m, including: 28m at 3.31% Cu, 0.49g/t Au and 7.1g/t Ag from 151m

Resource drilling will continue on a 40m x 40m drilling grid with four rigs operating and two further large-capacity rigs expected on-site within the fortnight.

RareX claim Bonanza Grades for Rare Earths in Latest Drill Campaign.

RareX reported further significant results from recently completed in‐fill and extensional drilling at its 100%‐owned flagship Cummins Range Rare Earths Project in the Kimberley region of Western Australia.

Results from the two latest RC holes include significant widths of high‐grade rare earths and niobium mineralisation with broad zones of bonanza grade mineralisation encountered in one of the holes.

The north‐west trending channel of mineralisation encountered in previously released drill holes has been confirmed in the latest results, further enhancing the potential size and grade of the Resource in this area.

Previous historical drilling on surrounding sections had confirmed the presence of high‐grade mineralisation down to 70m below surface. The current drill program has now extended the zone of high‐grade mineralisation to 130m below surface.

One of the holes contained wide ultra‐high grade zones including 13m at 10.7% TREO and 1.04% Nb2O5 from 76m and 8m at 9.1% TREO and 0.58% Nb2O5.

RareX Managing Director, Jeremy Robinson, said: “We continue to be impressed by the consistency of this thick, high‐grade mineralisation within this north‐west channel within the Resource. These impressive results provide strong support for the potential both to upgrade the Resource and to define a high‐grade component within the broader Resource.

“Understanding the controls on the high‐grade mineralisation in the weathered zone will also assist with targeting potential high‐grade primary mineralisation in follow‐up drilling to further expand the overall size of the Resource.”

Horizon Says Pre-Feasibility Results Are Positive.

When releasing the pre-feasibility results for Horizon (ASX:HRZ) Managing Director Mr Jon Price said:  “Our Joint Venture partner RVT has done an excellent job demonstrating the quality and viability of this world class oxide vanadium resource. The Lilyvale deposit alone can provide globally significant supply for the next 100 years and easily expand production to meet the increasing demand from both the steel and emerging battery storage markets.”

“With this increase in demand in coming years and the reduction in the supply of vanadium from steel slags, we see the vanadium price continuing its steady climb and look forward to advancing the project to DFS level and commencing commercial production discussions with interested offtake partners.”

The Richmond – Julia Creek Vanadium Project is located approximately 50kms north-west of Richmond in North West Queensland. Richmond is a regional service town of 520 people situated 500kms by road to the west of Townsville and 400kms east of the mining town of Mt Isa.

The Mineral Resource update has resulted in improved grades over the previous Mineral Resource Estimate, and led to 76% of the Mineral Resource upgraded to the Indicated JORC Category for estimation of maiden Ore Reserves. In addition, the drilling enabled a large metallurgical sample representative of the orebody for additional concentration and downstream processing test work to also feed into the Pre-Feasibility Study.

A couple of nibbles for our News Bites:

Dacian Gold has re-negotiated their gold hedging for the next couple of years with 27,324 ounces moving from FY20121 to FY2022.

Managing Director, Leigh Junk, commented: “The restructuring reduces our obligations during FY2021, providing additional cash flow over the remainder of the current financial year by increasing our spot gold exposure. Now that our hedge profile is aligned with our production profile, the Company will be in a stronger position to pursue its corporate objectives.”

It would seem Mr Junk is turning the fortunes of the company around since coming on board.

Strategic Elements is developing a self-charging battery that it says will self-charge, be non-flammable, flexible, light and thin and environmentally friendly when compared to lithium batteries.  The batteries are “printed” and ideal for Internet of Things (IOT) devices.

SOR Managing Director Charles Murphy said: “Early stage results are extremely promising as we apply years of experience and intellectual property in electronic inks into the development of a Battery Ink that generates electricity from the environment. From the Automated Robotic Security Vehicle we are building with US giant Honeywell, the ongoing commercialisation of the Nanocube Memory Ink, this new development in Battery Ink and other commercial activities on the horizon, SOR is generating significant momentum”.

 

Morning News Bites – Jul 31

In today’s morning news bites:

AMP has provided an update on its first half 20 details where it completed the sale of AMP Life, several junior explorers have reported their quarterly reports this week and PM Scott Morrison meets with Victorian Premier Daniel Andrews on further restrictions as the PM also says there is no reason to keep WA borders closed.

  • Mandrake Resources continues to develop Newleyine into a highly prospective Ni-Cu-PGE target. Newleyine is located around 30km east of Chalice Gold’s Julimar Ni, Cu, PGE project. While drilling at Mandrake’s Northern Territory – Berinka Pine Creek Gold Project is set to begin next week.
  • The development of Classic Minerals to become a gold producer continues. According to Classic Minerals, RC Drilling at Kat Gap is set to continue into the FY21 with targets on the interpreted plunge component of high-grade gold mineralisation with deeper RC drilling. Quarter 1 FY21 will also include advancing all aspects of the mining plan at Kat Gap, the acquisition of necessary mining equipment for Kat Gap and continuing to raise capital & pay down debt & liabilities to improve the financial position of the Company.
  • 460,000-ounce gold ore reserve has been declared at six deposits within 50 km of the Ora Banda Mining plant, this was one of the highlights for Ora Banda Mining for the previous quarter. An AISC of $1,578 /oz is one of the key outcomes within the DFS for an Australian gold price of $2,550. The recent capital raising Equity capital raising was strongly supported and proceeds from the equity raising, together with existing cash, will see Ora Banda fully funded through to production at Davyhurst, targeted for January 2021

    Dacian Gold
    Dacian are within FY20 guidance
  • Dacian Gold is within guidance for its Mount Morgans Gold Operation, reporting 138,814 oz at an AISC of $1,619/oz which was within guidance of between 138,000-144,000 ounces at MMGO AISC $1,550-1,650/oz for the financial year. Drilling programs commencing at the Cameron Well and Mt McKenzie deposits will take place within the first half of 2021 financial year. As of June 30, Dacian had a total cash and unsold gold on hand of $57.3 million.
  • Drill results at Kirkland Gold’s Fosterville Gold Mine have been released with several key intersects with Infill drilling into the Swan Mineral Reserves which included 976 g/t Au over 7.4 m, 933 g/t Au over 6.4 m  and 416 g/t Au over 6.8 m. According to Tony Makuch, President and CEO of Kirkland Lake Gold “Drilling at Fosterville continues to demonstrate the significant size and scale of the mineralised structures, all of which contain quartz veining with 2 visible-gold and all of which have the potential to host additional Swan or Swan-like zones. At the Swan Zone, results from new infill drilling include higher than expected grades, which is encouraging as we work towards our next Mineral Reserve and Mineral Resource update. In particular, the infill results confirm that the area where the Swan Fault and Swan Footwall Splay intersect contains more gold than currently modelled.” Kirkland also released Q2 results which included revenue more than doubling on same quarter in 2019, solid operating results and $537.4 million with no debt.